Chinese Government provides RMB 60 million interest-free loan for rural road upgrades and acquisition of equipment for rural district councils

On 22 February, 2013, visiting Chinese Commerce Minister, Chen Deming, signed an agreement formally committing the China Ministry of Commerce's provision of a 60 million RMB (~$10 million USD) interest-free loan to the Zimbabwean Government for the purpose of purchasing road equipment for rural district councils (See: 'The then Chinese Minister of Commerce Chen Deming visited Zimbabwe on February 21 -24, 2013' and 'China Loans to Africa'). The current state of this project is unknown.This was one of four agreements signed on this day with the Zimbabwean Government in a move to further cement bilateral relations. The other three agreements include:Project #30650: A $2 million grant for agricultural equipment.Project #30639: A RMB 31.5 million grant to Zimbabwe Broadcasting Corporation for the provision of a broadcasting van.Project #30649: A pledge for a food aid donation.

Additional details

Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.

Number of official sources

2

Number of unofficial sources

4