China Eximbank provides RMB 19.4 million loan for Kasane Housing Project (86 Units)

In 2000, China Eximbank and the Government of Botswana signed an RMB 22,557,815 loan agreement for the Kasane Housing Project (86 Units). This loan carried the following borrowing terms: a 12 year maturity, a 4 year grace period, and a 4% interest rate. The face value of the loan was subsequently revised to RMB 19,490,521. The Government of Botswana used the proceeds from the loan to on-lend to the Botswana Housing Corporation (BHC) at a significantly higher interest rate (approximately 8.5%). The BHC, in turn, used the proceeds from its subsidiary loan agreement with the Government of Botswana to construct 86 housing units in the town of Kasane. Complant Botswana (Pty) Ltd., a subsidiary of China National Overseas Engineering Corporation, was the contractor responsible for implementation. This project was completed, but its precise date of completion is unknown.

Additional details

1. Some sources indicate that this loan was secured in late 1999 and others indicate that it was secured in 2000. 2. There is also disagreement across sources with respect to the final maturity date of the loan. SAIS-CARI records a maturity length of 16 years. Botswana’s Ministry of Finance and Economic Development records a maturity = of 12 years. AidData relies on the maturity that is recorded by Botswana’s Ministry of Finance and Economic Development.

Number of official sources

7

Number of total sources

9