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Overview

China Eximbank provides $30 million loan for an unspecified defense project

Commitments (Constant USD, 2023)$30,188,889
Commitment Year•2018Country of Activity•ZambiaDirect Recipient Country of Incorporation•ZambiaSector•Government And Civil SocietyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2018
First repayment (originally scheduled)
Jun 21, 2021
Last repayment (originally scheduled)
Nov 8, 2030

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

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Zambia

Loan description

China Eximbank provides $30 million loan for an unspecified defense project

Grace period•3.4733 yearsGrant element•21.6413%Interest rate (t₀)•5.728%Interest type•UnknownMaturity•12.8605 years

Narrative

Full Description

Project narrative

According to Zambia's Ministry of Finance, between January and June of 2018, China Eximbank and the Government of Zambia signed a $30 million loan agreement for an unspecified defense project. No further details are available.

Staff comments

1. This project is also known as the Defense Project. 2. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Zambia was 3.4733 years in 2018. AidData estimates the grace period of the China Eximbank loan that supported the defense project by using this figure. See https://www.dropbox.com/scl/fi/uyz6w7q31x2o8i6rna7ug/DRS-May-2024-Extraction-Official-Chinese-Loan-Commitments-to-Zambia.xlsx?rlkey=n0a6270w91pdmmfyaoqva419r&dl=0 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Zambia was 12.8605 years in 2018. AidData estimates the maturity of the China Eximbank loan that supported the defense project by using this figure. See https://www.dropbox.com/scl/fi/uyz6w7q31x2o8i6rna7ug/DRS-May-2024-Extraction-Official-Chinese-Loan-Commitments-to-Zambia.xlsx?rlkey=n0a6270w91pdmmfyaoqva419r&dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Zambia was 5.728% in 2018. AidData estimates the interest rate of the China Eximbank loan that supported the defense project by using this figure. See https://www.dropbox.com/scl/fi/uyz6w7q31x2o8i6rna7ug/DRS-May-2024-Extraction-Official-Chinese-Loan-Commitments-to-Zambia.xlsx?rlkey=n0a6270w91pdmmfyaoqva419r&dl=0