China Eximbank provides a $295.8 million buyer's credit loan for Phase 1 of Lusaka Urban Road (L400) Upgrade Project (Linked to Record ID#57194, #57190, #57218)

Project narrative

On August 29, 2012, the Zambia Road Development Agency (RDA) signed a $348,293,745 commercial contract with AVIC International Project Company Limited for Phase 1 of the Lusaka Urban Road (L400) Upgrade Project. Then, on July 17, 2013, China Eximbank and the Government of Zambia signed a $295.8 million buyer’s credit loan (BCL) agreement for Phase 1 of the Lusaka Urban Road (L400) Upgrade Project. The borrowing terms of the loan are unknown. However, it is known that the borrower purchased buyer's credit insurance from Sinosure. It is also known that the borrower was expected to use the loan proceeds to finance 85% of the cost of a commercial contract between AVIC International. The Government of Zambia agreed to providing counterpart funding to cover the remaining 15%. The Lusaka Urban Road (L400) Project involves the design, rehabilitate, upgrade and construct approximately 402 km of selected urban and township roads in Lusaka City. At baseline, 14% of the road network in Lusaka was in good condition, 15% in fair condition. and 71% in poor condition. L400 was therefore initiated in order to enhance mobility within the city through reduced traffic congestion, travel times, and vehicle maintenance costs. The scope of works included widening selected roads which have very high traffic volume, improving selected roads to and within the industrial and commercial areas, construction of bus bays along selected bus routes as part of road safety measures, improving of public transport infrastructure, re-engineering selected junctions to improve traffic flow, construction of walkways along selected roads, providing interchange solution for Kafue Roundabout. Phase I was divided into 4 lots. The roads in Lot 1 included Burma, Chilimbulu, Mumbwa, roads in Chinika area, roads in the Industrial area and a road leading to Barlastone from Chunga covering a distance of 119 km. The roads in Lot 2 included roads in areas around Chawama, Lilayi, Kamwala South and Libala South covering a distance of 216.3 km. Lot 3 comprised roads in areas around Chelston, Avondale, Ibex and Kamanga. The total distance of roads in Lot 3 was 77 km. The roads that were included in Lot 4 are unknown. The Phase 1 groundbreaking ceremony took place on August 16, 2013. Works were supposed to last 43 months. The roads that were successfully rehabilitated, paved through Phase 1 were opened to traffic on December 31, 2017.