Chinese Government provides $8 million interest-free loan via ETCA for education and police projects (Linked to Project iD#52348, #57910, #69223)
Commitment amount
$ 9446436.066867737
Adjusted commitment amount
$ 9446436.07
Constant 2021 USD
Summary
Funding agency [Type]
China Ministry of Commerce [Government Agency]
Recipient
Malawi
Sector
Education (Code: 110)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
No
Category
Project lifecycle
Geography
Description
On January 21, 2016, the Chinese Government and the Government of Malawi signed letters of exchange for three separate projects: five community technical colleges (Project ID#57910), Mzuzu Youth Centre (Project ID #69223), and procurement of police vehicles (Project 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 (Project 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.
Additional details
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.
Number of official sources
9
Number of total sources
15
Details
Cofinanced
No
Direct receiving agencies [Type]
Government of Malawi [Government Agency]
Implementing agencies [Type]
China Railway 14th Bureau Group Co., Ltd. (CRCC14) [State-owned Company]
Loan Details
Maturity
20 years
Interest rate
0.0%
Grace period
10 years
Grant element (OECD Grant-Equiv)
71.6021%