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Overview

China Eximbank agrees in principle to provide loan for 235km of TOO5 Road from Manyinga to Mwinilunga and 5 km Urban Roads in Manyinga in Northwestern Province

Commitment Year2019Country of ActivityZambiaDirect Recipient Country of IncorporationZambiaSectorTransport And StorageFlow TypeLoan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2019
Start (actual)
Dec 31, 2019

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

Implementing agencies

Government Agencies

  • Zambia Road Development Agency

State-owned companies

  • China CAMC Engineering Co., Ltd. (CAMCE)

Loan desecription

China Eximbank agrees in principle to provide loan for 235km of TOO5 Road from Manyinga to Mwinilunga and 5 km Urban Roads in Manyinga in Northwestern Province

Interest typeUnknown

Narrative

Full Description

Project narrative

On July 16, 2016, China CAMC Engineering Co. signed a 36-month commercial contract worth $273,179,080 with Zambia's Road Development Agency (RDA) involving the upgrade to bituminous standard of 214 kilometers of D286 road from Manyinga to Mwinilunga plus 4 kilometers of roads in the North Western Province in Zambia. According to the RDA's 2018 Annual Work Plan, the project seems to have been expanded to include 235km of TOO5 Road from Manyinga to Mwinilunga and 5 km Urban Roads in Northwestern Province. China Eximbank was noted the source of funding, though it is unclear how much financing was provided. The House debate script from October 11, 2017 says "the Road Development Agency (RDA) has completed the engagement of the contractors, but implementation awaits the finalization of the financing agreement by the Ministry of Finance." The Zambian Report on Government Assurances from 2020 states that as of September 2018, the delay in approval for the project's financing was "due to the Government’s decision to indefinitely postpone the contraction of pipeline debt as a measure to address fiscal and debt challenges for sustained macroeconomic stability." According to the RDA's 2020 work plan, construction is ongoing.

Staff comments

1. Although a Facebook post from Northwestern Newsline reports China Exim as the financing agency as of May 2018 (see: "MANYINGA - MWINILUNGA.."), the Road Development Agency started reporting Eximbank as the financier starting from its 2019 Annual Work Plan. 2. AidData assumes the pledge year is 2019 for the time being. 3. The Chinese project title is Manyinga—Mwinilunga公路建设项目 or 赞比亚马宁加至姆维尼伦加公路升级改造项目.