China Eximbank provides RMB 408,265,000 government concessional loan for the Development and Expansion of National Route 2 (RN2) from Toamasina to Tsarakofafa Project

On January 19, 2018, the Chinese Government and the Government of Madagascar signed a preferential loan framework agreement on the Development and Expansion of National Route 2 (RN2) from Toamasina to Tsarakofafa Project. Then, on September 3, 2018, the Government of Madagascar signed an RMB 408,265,000 government concessional loan (GCL) agreement with China Eximbank for the Development and Expansion of National Route 2 (RN2) from Toamasina to Tsarakofafa Project. Several months later, on December 28, 2018, the Malagasy High Constitutional Court authorized the ratification of the loan agreement. The GCL carries the following borrowing terms: a 30 year maturity, a 5 year grace period, and a 1.5% interest rate. The project involves the widening of a 3.606 km existing stretch of road from National Route 2 (RN2) to Pangalane Bridge and the construction of a 6.26 km stretch of road between Pangalane Bridge to Tamatave Port. The RN2 is the major highway in Madagascar that connects to the capital city of Antananarivo. The ultimate purpose of this project is to de-congest traffic on the RN2. Anhui Foreign Economic Construction Group Co. (AFECC) is the contractor responsible for implementation. Construction began on April 7, 2019. Once the highway is operational, a toll system will be put into place.

Additional details

1. The French project title is Projet d’Aménagement et d’Extension de la Voie Rapide Reliant le Port de Toamasina et la RN2. The Chinese project title is 马塔马塔夫港至2号国道快速路项目 or “疏港路”项目 or 塔马塔夫疏港路. 2. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not record the terms of the loan that supported this project. AidData records the lending terms (30 year maturity, 5 year grace period, and a 1.5% interest rate) that were presented to Madagascar’s National Assembly immediately before the ratification of the loan.”

Number of official sources

17

Number of total sources

21