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Overview

AVIC International provides $50 million supplier's credit for Phase II of Procurement of Earth-Moving Equipment for Road Rehabilitation Project (Linked to Record ID#2303)

Commitments (Constant USD, 2023)$63,891,963
Commitment Year•2014Country of Activity•ZambiaDirect Recipient Country of Incorporation•ZambiaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2014
Start (actual)
Sep 8, 2015
End (actual)
Sep 8, 2015

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 companies

  • AVIC International Holding Corporation

Receiving agencies

Government Agencies

  • Government of Zambia

Implementing agencies

Government Agencies

  • Zambia National Service (ZNS)

State-owned companies

  • AVIC International Holding Corporation

Loan description

AVIC International provides $50 million supplier's credit for Phase II of Procurement of Earth-Moving Equipment for Road Rehabilitation Project

Interest type•Unknown

Narrative

Full Description

Project narrative

On October 25, 2007, China Eximbank and the Government of Zambia signed a $39,899,000 million USD loan agreement for Phase I of the Procurement of Earth-Moving Equipment for Road Rehabilitation Project (Record ID#2303). The proceeds from this loan were used to acquire earth-moving equipment for the purposes of rehabilitating roads and bridges that were destroyed by heavy rains and flooding. This loan was disbursed in 2007 ($11.74 million USD), 2008 ($23.51 million USD), and 2009 ($3.92 million USD). AVIC International Holding Corporation was the contractor responsible for project implementation. Phase I (Record ID#2303)was completed at an unknown time. In May 2014, Zambia's Ministry of Defense and AVIC International signed a procurement and training agreement for more than 300 various pieces of heavy-duty earth-moving equipment, agricultural machinery, and transport vehicles worth $62.3 million USD. Then, in 2015, AVIC International signed a $50 million USD supplier's credit with the Government of Zambia for Phase II of Procurement of Earth-Moving Equipment for Road Rehabilitation Project. The loan terms are unknown. The proceeds from this supplier's credit were used by Zambia's Ministry of Defense to fund its $62.3 million USD procurement and training agreement with AVIC International. The machinery that was acquired during Phase II was to be used by the Zambia National Service (ZNS) unit within the Ministry of Defense (after President Lungu moved the Rural Roads Unit to the Ministry of Transport, which was previously under the jurisdiction of the Ministry of Defense). The equipment was reportedly distributed across all Zambian provinces for the construction of feeder roads and bridges as part of Link Zambia 8000 and Pave Zambia 2000 projects intended to connect rural areas with the rest of the country. AVIC International Holding Corporation also provided an after-sale service and training program that involved teaching repairing, maintenance, and operating essentials. 20 Zambian mechanics were trained in China with the earth-moving equipment for one month and roughly 300 other operators received professional training in Zambia. The equipment for phase II was given to the Zambian government in a handover ceremony on September 8, 2015.