Chinese Government provides $30 million grant — via ETCA — for Mulungushi International Conference Center (MICC) Construction Project (Linked to Umbrella Project #59127)

On September 4, 2018, at the Forum on China Africa Cooperation (FOCAC) Summit, President Xi Jinping pledged to provide a $30 million grant to the Government of Zambia for the Mulungushi International Conference Center (MICC) Construction Project. Then, in November 2018, the Chinese Government and the Government of Zambia signed an exchange of notes, which formalized the $30 million grant commitment for the Mulungushi International Conference Center Construction (MICC) Project. The grant proceeds were drawn (at least in part) from an Economic and Technical Cooperation Agreement (ETCA), which was signed by the parties in June 2017, as captured by Project ID#59127. The purpose of the project is to build a new 23,950 square meter conference center on the Mulungushi International Conference Center (MICC) grounds in Lusaka (exact locational coordinates: -15.389366868110134, 28.31330540119283) as part of preparation for Zambia's hosting the July 2022 African Union Heads of State Summit. The main conference hall will have a 2500-seat conference hall, one 600-seat medium meeting room, one 400 seat multi-function hall, and ten 60-seat group meeting rooms. It will also have five VIP rooms, office area, exhibition area, press center, emergency medical center, service area, auxiliary facilities such as parking space. The existing MICC facility will also be renovated. To facilitate the implementation of the project, the Zambian Government agreed to provide land and the necessary permits. The Chinese Government is responsible for the design, engineering, provision of construction machinery, equipment, needed materials, engineers, and technical personnel for construction works. China Jiangsu International Economic and Technical Cooperation Co. Ltd. is the contractor responsible for implementation. The project has reportedly created 530 jobs for local Zambians. Four local contractors were also engaged in line with the Zambian Government policy that compels foreign firms to give 20 percent of their construction works to local contractors. A project implementation agreement (项目实施协议) was signed on October 28, 2019. Then, on February 28, 2020, a groundbreaking ceremony took place. The project was originally expected to reach completion within within 27 months (April 28, 2022). However, of February 2022, the project had achieved an 87% completion rate and it was running slightly ahead of schedule.

Additional details

1. This project is also known as the International Conference Center Construction Project, the MICC Construction Project, the China Aid International Conference Center Project, and the Kenneth Kaunda International Conference Center Construction Project. The Chinese project title is 赞比亚国际会议中心项目 or 援赞比亚国际会议中心项目 or 赞比亚国际会议中心项目. 2. While the Zambia Online source lists the funding as an interest-free loan, that is said to come from Diggers.com. All other sources, including the Zambian Parliament source, list the funding as a grant. 3. In June 2017, during a visit by Chinese State Councilor Wang Yong, the Chinese and Zambian Governments signed two economic and technical cooperation agreements worth RMB 450 million. One RMB 250 million agreement was signed for the construction of milling plants in Monze, Mpika and Lusaka and construction of an International Conference Center to host the 2022 African Union Summit (see Project ID#59127). 4. On March 4, 2020, Zambia's Minister of Housing and Infrastructure Development was asked why the cost of the project went from $30 million as announced in 2018 up to $60 million USD in 2020. He responded by saying that it "shouldn't be strange because it is free money." However, AidData has not yet identified any other evidence that the Chinese Government committed an additional $30 million of grant funding. This issue warrants further investigation.

Number of official sources

18

Number of total sources

30