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Overview

CNMC Industrial Zone Development provides $11.1 million loan for Power Transmission Line to Chambishi Park Project

Commitments (Constant USD, 2023)$15,399,227
Commitment Year•2009Country of Activity•ZambiaDirect Recipient Country of Incorporation•ZambiaOverseas Jurisdiction•ZambiaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2009
First repayment
Jan 1, 2009
Last repayment
Dec 29, 2023

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

  • CNMC Industrial Zone Development Zambia Limited

Receiving agencies

State-owned companies

  • Zambia Electricity Supply Corp. (ZESCO)

Loan desecription

CNMC Industrial Zone Development provides $11.1 million loan for Power Transmission Line to Chambishi Park Project

Grant element•46.5052%Interest rate (t₀)•0%Interest type•Fixed Interest RateMaturity•15 years

Narrative

Full Description

Project narrative

In 2009, CNMC Industrial Zone Development (a subsidiary of state-owned China Nonferrous Metal Mining (Group) Co., Ltd) provided a $11.1 million loan to ZESCO Limited (Zambia’s state-owned power company) for a power transmission line to Chambishi Park. This loan facility is equal to 40% of total project cost ($27.8 million) and it carries the following borrowing terms: a 15-year maturity and a 0% interest rate with 180 equal monthly installments with no grace period. As of December 31, 2017, the loan's amount outstanding was $4.4 million. Chambishi Park is part of the Zambia-China Economic & Trade Cooperation Zone (ZCCZ), which is the first Chinese special economic zone established in Africa. As of the end of 2011, 17 companies had settled in the ZCCZ with a total output value of $4.35 billion which surpasses the original investment of $900 million USD. It is located in the central part of the Zambia Copper Belt Province, 360 km from Lusaka, the capital of Zambia, and 70 km from Ndola, the second largest city in Zambia.

Staff comments

1. This loan is omitted from the SAIS-CARI database of Chinese loan commitments released in 2020 and re-released in 2021. 2. The loan is assumed to not have a grace period because the loan's immediately disbursed and paid back at the second loan period. The loan is also to not have a default penalty because it does not have an interest rate.