China Eximbank provides $45 million loan for 330kV Kariba North Bank-Kafue West Transmission Line Project (Linked to Record ID#354)

Project narrative

On March 4, 2014, the Chinese Ambassador and the Zambian Minister of Finance signed a $41 million loan framework agreement for the 33kV Kariba North Bank-Kafue West Transmission Line Project. Then, on October 13, 2014, China Eximbank and the Zambia Ministry of Finance signed a $45 million loan agreement to support this project. The loan carried the following terms: 20-year maturity, 7-year grace period, and 2% interest rate. According to ZESCO's Report and Financial Statements, as of December, 31 2017, 100% of the loan funds had been drawn down. The proceeds from the loan were used to fund the construction of a 120 km power transmission line between the China Eximbank-financed Kariba North Bank Hydropower Plant (see Record ID#354) and Kafue West substation. Sinohydro was the contractor responsible for implementation. The project officially commenced on March 18, 2013 and construction ended on or around October 25, 2014. On December 15, 2014, power was successfully evacuated from the Kariba North Bank Hydropower Plant to the newly constructed transmission lines and then onward to the Lusaka power grid.