China Development Bank provides $29 million loan for Phase II of the Lusaka East Park Project (Linked to Record ID#85248, #85249)

Project narrative

In August 2014, China Development Bank (CDB), Bank of China (BOC) Zambia Limited, and Zambia China Economic and Trade Cooperation Zone Development Co., Ltd. signed a $30 million loan agreement for Phase I of the Lusaka East Park Project (as captured via Record ID#53208). Then, on June 15, 2015, CDB and Zambia China Economic and Trade Cooperation Zone Development Co., Ltd. signed a $29 million loan agreement for Phase II of the Lusaka East Park Project. The borrowing terms of the loan are unknown. The purpose of the project -- including Phase I and Phase II -- was to improve the infrastructure of Lusaka Park to support the enterprises that operate there. Zambia China Economic and Trade Cooperation Zone Development Co., Ltd. is a special purpose vehicle and joint venture between China Nonferrous Metals Company (CNMC) (95% equity stake) and NFC African Mining Plc. (5% equity stake). NFC African Mining Plc. itself is a joint venture between CNMC (85%) and Zambia Consolidated Copper Mines Ltd. (15%), a Zambian government-owned holding company. CNMC began planning the Zambia-China Economic and Trade Cooperation Zone (ZCCZ) in 2003. The ZCCZ is the first Chinese economic cooperation zone established in Africa and it consists of two different parks: the Chambishi Park and the Lusaka East Park. The Chambishi Park is located in the central part of the Zambia Copper Belt Province, 360 km from Lusaka. CNMC’s decision to open this zone for mineral processing and related industries allowed the company to make full use of the 41-square km area of its Chambishi copper mine. In 2006, CNMC won official support from the Chinese Ministry of Commerce for the Chambishi zone. In February 2007, China’s president Hu Jintao presided at the opening ceremony of the zone. The Chambishi Zone focuses on the value chain of copper and cobalt: mining, processing, recycling, machinery, and service. By July 2009, eleven enterprises had been established in the zone. Lusaka East Park is located in the northeastern part of the capital near the Lusaka International Airport. It was launched in January 2009. The 5-square km zone was supposed to diversify out of resource-intensive investment as well as to accommodate the Zambian government’s desire for urban employment opportunities. By the end of February 2018, the accumulated sales from the Zambia-China Economic & Trade Cooperation Zone reportedly reached over $13 billion, with 51 enterprises currently operating in both park in a wide array of industries, including heavy industry, mining, agriculture and construction.