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Overview

Chinese Government provides RMB 40 million interest-free loan for Presidential Palace Expansion Project (Linked to Record ID#12303)

Commitments (Constant USD, 2023)$7,600,067
Commitment Year2010Country of ActivityBurundiDirect Recipient Country of IncorporationBurundiSectorGovernment And Civil SocietyFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 1, 2010
Start (actual)
Mar 4, 2016
End (actual)
Feb 14, 2019
First repayment (originally scheduled)
Oct 29, 2020
Last repayment (originally scheduled)
Oct 27, 2030

Geospatial footprint

Map overview

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The Presidential Palace is located in Gasenyi, which is 8 km northeast of Bujumbura's city center in Mutimbuzi district. More detailed locational information is available at https://www.openstreetmap.org/way/748670662

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 Burundi

Implementing agencies

Government Agencies

  • Government of Burundi

State-owned companies

  • China First Highway Engineering Company (CFHEC)
  • Hunan Construction Engineering Group Co., Ltd.

Loan desecription

Chinese Government provides RMB 40 million interest-free loan for Presidential Palace Expansion Project

Grace period10 yearsGrant element75.0516%Interest rate (t₀)0%Interest typeFixed Interest RateMaturity20 years

Narrative

Full Description

Project narrative

In November 2010, the Chinese Government and the Government of Burundi signed an agreement that committed funding for a Presidential Palace Expansion Project. The Presidential Palace (Palais Présidentiel Ntare Rushatsi) is located in Gasenyi, which is 8 km northeast of Bujumbura's city center in Mutimbuzi district. This project involved the construction of a presidential office building, security guard houses, and sewage treatment facilities in a 10,000 square meters (107,600 sq ft) area. It also involved the installation of equipment. The Chinese Government reportedly provided RMB 40 million for the implementation of this project, and it was funded with the proceeds from an RMB 50 million interest-free loan agreement that the Chinese Government and the Government of Burundi signed on August 21, 2009 (see Record ID#12303). This loan carried the following terms: 20 year maturity, 10 year grace period, and 0% interest. China First Highway Engineering Group Co., Ltd. and Hunan Construction Engineering Group were the contractors responsible for implementation. An official groundbreaking ceremony took place on December 21, 2015. However, construction did not begin until March 4, 2016. This project was ultimately completed and handed over to the authorities on February 14, 2019. The total reported cost of this project is RMB 147 million, but it is unclear if the remaining RMB 107 million came from a Chinese Government grant or interest-free loan.

Staff comments

1. This project is also known as the Ntare Rutshatsi House Project. 2. The French project title is Projet Du Palais Presidentiel or Palais Présidentiel NTARE Rushatsi. 3. The Chinese project title is 中国援建布隆迪总统府项目 or 布隆迪总统府项目. 4. A second phase of the project — that involved the construction of parking lots, drainage ditches, and office facilities — was undertaken by the China First Highway Engineering Group Co., Ltd. However, it is not clear if the cost of the second phase required supplemental funding from the Chinese Government (beyond the RMB 40 million that is captured here). Also, note that the interest-free loan which supported this project is omitted from the SAIS-CARI database of Chinese loan commitments (released in July 2020).