China Eximbank loans RMB 1.118 billion for Mbala-Nakonde (D1) Highway Upgrading Project

On April 15, 2011, the Chairman of China CAMC Engineering Co. Limited and the Permanent Secretary of Zambia’s Ministry of Works and Supply signed a $180 million USD civil works contract for the Mbala-Nakonde Highway Upgrading Project. Then, on April 11, 2013, China Eximbank and the Government of Zambia signed RMB 1,118,000,000 loan agreement for the same project. The terms of this loan are unknown. As of December 31, 2017, $179.22 million USD had been disbursed in support of this project. This project involved the upgrading of a 171.9 km two-way dual lane (D1) road between Mbala and Nakonde to bituminous standard standard class 1C over a 36-month work period. Construction began in late 2012 and the expected project completion date was April 14, 2014. The contract completion period was extended to 19 June 2016. The project was officially completed and handed over to the authorities on June 20, 2017.

Additional details

The Chinese project title is 穆巴拉-纳孔德公路升级改造项目 or 穆巴拉—纳孔德公路.Page 1 line 3 of the 2017 Road Sector Annual Work Plan mentions China Development Fund in the project name but only mentions China Eximbank as the source of funding. Moreover, most sources indicate the China Eximbank loaned about $180 million USD to Zambia for this project. However, the 2013 Annual Economic Report (source ID 48626 p. 59) reports $196 million USD. Even though this is an official source, it is safe to assume China Eximbank provided just enough to cover the commercial contract which was about $180 million USD.

Number of official sources

15

Number of unofficial sources

4