China Eximbank provides $194.8 million buyer’s credit for Zambia Township Roads (Lot 2) Project (Linked to Project ID#57227)

On November 23, 2018, China Eximbank and the Government of Zambia signed a $194,815,136 buyer’s credit (loan) agreement for the Zambia Township Roads (Lot 2) Project. The borrowing terms of the loan are unknown. However, it is known that the borrower was expected to use the proceeds of the loan to finance approximately 85% of a $229,195,226.00 commercial contact between Zambia's Road Development Agency (RDA) and AVIC International, which was signed in March 2017. The remaining 15% was to be directly funded by the Government of Zambia. The scope of the project includes the engineering design, rehabilitation, upgrading and construction of approximately 154 km of selected township roads in Ndola, Kalulushi, Chambeshi and Luanshya districts within Copperbelt Province. The project also includes walkways, street lighting and traffic lights at selected junctions. AVIC International is the general (EPC) contractor responsible for implementation. As of late 2020, the RDA described Lot 2 construction activities as ‘ongoing.’ However, the Mayor of Luanshya announced in February 2021 that the Luanshya district project component was slated to commence in March 2021. The contract was originally expected to take 36 months to complete.

Additional details

1. This project is also known as the ZTR 2 Project, the Copperbelt Province Urban Road Lot 2 Project, the 154 km of Township Roads in Ndola, Kalulushi, Chambeshi and Luanshya (Lot 2) Project, and the Ndola, Kalulushi, Chambeshi and Luanshya Copperbelt Province Urban Road Lot 2, 154 km Project. The Chinese project title is 铜带城市道路升级改造项目 or 铜带城市道路升 级改造项目 Lot2. 2. Beginning in 2019, Zambia's Road Development Agency identified the Export-Import Bank of China as the financier of the Zambia Township Roads (Lot 2) Project. 3. Due to the fact that the China Eximbank loan was used to finance 85% of the total cost of a commercial contract with AVIC International, AidData assumes that it was provided in the form of an export buyer’s credit. It is unclear if the export buyer’s credit is of a preferential nature or non-preferential nature. This issue warrants further investigation.

Number of official sources

9

Number of total sources

13