Overview

Chinese Government provides $8 million interest-free loan via ETCA for education and police projects (Linked to Record ID#52348, #57910, #69223)

Commitments (Constant USD, 2023)$8,725,773

Commitment Year•2016Country of Activity•MalawiDirect Recipient Country of Incorporation•MalawiSector•EducationFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 21, 2016

Start (actual): Nov 24, 2018

First repayment (originally scheduled): Jan 18, 2026

Last repayment (originally scheduled): Jan 16, 2036

Geospatial footprint

Map overview

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The purpose of the project is to provide grant for community and technical colleges. More detailed locational information can be found at https://www.openstreetmap.org/relation/7343189, https://www.openstreetmap.org/relation/7345522, https://www.openstreetmap.org/node/265772769, https://www.openstreetmap.org/relation/7347097, https://www.openstreetmap.org/relation/7347767

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

Government Agencies

China Ministry of Commerce

Receiving agencies

Government Agencies

Government of Malawi

Implementing agencies

State-owned companies

China Railway 14th Bureau Group Co., Ltd. (CRCC14)

Loan desecription

Chinese Government provides $8 million interest-free loan via ETCA for education and police projects

Grace period•10 yearsGrant element•75.0516%Interest rate (t₀)•0%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

On January 21, 2016, the Chinese Government and the Government of Malawi signed letters of exchange for three separate projects: five community technical colleges (Record ID#57910), Mzuzu Youth Centre (Record ID#69223), and procurement of police vehicles (Record ID#57775). Through these agreements, the Chinese Government signed letters of exchange for a soft loan of $8 million USD to support the five community technical colleges in Mzimba, Ntcheu, Zomba, Mulanje, and Nsanje districts. In addition to the loan, Chinese Government provided a $16 million grant to Malawi for the same project (Record ID#52348). The five community technical colleges project entered implementation on November 24, 2018. The contractor responsible for project implementation is China Railway 14th Bureau Group Co., Ltd. Around September 9, 2021, the company announced the completion of the project.

Staff comments

1. The Chinese project title is 马拉维五所社区技术学院项目. 2. This loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. 3. The construction of the Mzuzu Youth Centre has faced many delays and still not reached the construction phase.