China Development Bank loans $175.92 million USD for Upgrading of Mansa-Luwingu Road Project (Linked to #53044)

On December 27, 2012, the Zambia Road Development Agency and China Henan International Cooperation Group Company Ltd. signed a $206.96 million USD commercial contract for upgrading the Mansa-Luwingu Road Project. Then, in 2013, China Development Bank (CDB) and the Government of Zambia signed a $175.92 million USD loan agreement to support this project contract. The loan terms are unknown. As of 2014, CDB had disbursed $64.67 million USD from this loan. The Government of Zambia was responsible for counterpart funding for the remaining $31.04 million USD.The Government of Zambia soon realized they did not have enough tax and non-tax revenue to meet their initial counterpart funding commitment. Therefore, in 2016, CDB issued an additional $29.5 million USD loan to the Government of Zambia (see Project #53044). This loan, also called the Mansa-Luwingu Road Project (M3) Amendment, carried the following terms: 10-year maturity, 3-year grace period, 5.558% interest rate (LIBOR plus 450 basis points), 0.5% commitment fee, and 0.5% management fee.The Upgrading of Mansa-Luwingu Road Project had two components: the upgrading of a 175 kilometer M3 road from Mansa to Luwingu and upgrading 30 kilometers of urban roads from Mansa and Luwingu. The purpose of the project was to more effectively connect Mansa province with Luwingu province, and thereby reduce the cost of exporting copper products, agricultural products and other goods. The project was also expected to generate 1,200 jobs and take approximately 40 months to complete. China Henan International Cooperation Group Company Ltd. was the contractor responsible for project implementation. The Upgrading of Mansa-Luwingu Road Project was ultimately completed on July 18, 2016.

Additional details

Other project names: M3 Upgrading Project or 赞比亚205公里道路升级项目 or 曼萨-卢温古205公里道路升级项目 or 赞比亚曼萨－陆温谷205公里道路升级项目

Number of official sources

15

Number of unofficial sources

7