MOFCOM provides $30 million interest-free loan for Ministry of Foreign Affairs Office Building Construction Project

On November 30, 2005, China State Construction Engineering Corporation (CSCEC) was contracted to build the new office building (headquarters) for the Algerian Ministry of Foreign Affairs. The total project cost including design, pre-construction and main construction was somewhere between $190 million and $230 million. The project was financed in part with a $30 million from the loan/grant balance, which China’s Ministry of Commerce provided to Algeria previously (see 中建总公司签约阿尔及利亚外交部新办公楼项目). The purpose of the project was to build a new headquarters complex for the Algerian Ministry of Foreign Affairs — in the Plateau des Annassères within the Kouba suburb of Algiers — with 10 buildings and a large conference center and banquet hall capable of accommodating 1,700 people. Construction began on January 21, 2006 and lasted 49 months. A project completion ceremony was held on October 31, 2011. Chinese State Councilor Dai Bingguo has described the office building as the ‘the best administrative building on the African continent’.

Additional details

This project is also known as the Office Building for Ministry of Foreign Affairs. The French project title is le nouveau siège du Ministère algérien des Affaires Etrangères. The Chinese project title is 阿尔及利亚外交部新办公楼项目. Several MOFCOM sources refer to this project as being supported by Chinese ‘aid’ and ‘loan grants’ (see 中建总公司签约阿尔及利亚外交部新办公楼项目 & 中建总公司承建的阿外交部新办公楼项目破土动工). For the time being and conservative principle, AidData coded the project as being supported by an interest-free loan from MOFCOM. However, this issue merits further investigation. The funds that supported this project is not included in the database of Chinese loan commitments that SAIS-CARI published in July 2020. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.

Number of official sources

10

Number of unofficial sources

1