[Cancelled] China Development Bank provided $418 million loan for Copperbelt Urban Roads (C400) Project

Project narrative

On December 6, 2015, China Development Bank and Zambia's Ministry of Finance signed a $418 million buyer’s credit loan agreement for the Copperbelt Urban Roads (C400) Project. The borrowing terms of this loan are unknown. The proceeds from the loan were to be used to pay for 85% of the total project cost ($492,510,588). The Government of Zambia was responsible for covering the remaining 15%. This project involves the rehabilitation and upgrading of approximately 406 kilometers of urban township roads in the Copperbelt Province. The targeted beneficiary districts include: Kalulushi, Chambishi, Kitwe, Chingola, Mufulira, Ndola, Luanshya and Chililabombwe. Zulu Burrow Ltd. was the contractor responsible for project design and both China Henan International Cooperation Group Company Limited (CHICO) and AVIC were the contractors responsible for project implementation. CHICO was supposed to start work in Kitwe and Luanshya while AVIC was supposed to start work in Chingola. Construction was initially expected to start in the first quarter of 2016. However, when asked about the project on November 23, 2016, Zambia’s Minister of Housing and Infrastructure Development said work was expected to commence April 2017. A groundbreaking ceremony ultimately took place on June 26, 2017. The project was expected to be completed 48 months after construction began. According to notes from a 13th March 2018 parliamentary session, there has been repeated delays in the commencement of works in this project due to delays in providing the advance payment to contractors (consisting of the 15% counterpart funding from the Government of Zambia). CHICO reportedly abandoned the project in 2019 due to inconsistent payments from the Government of Zambia. According to notes from a 29th January 2021 parliamentary session, the rehabilitation of 406km of urban roads on the Copperbelt Province, under the C400km Road Project, is due for cancellation following guidance from the Ministry of Finance.