China Eximbank provides RMB 27.7 million loan for Francistown Housing Project (120 Units)

In 2003, China Eximbank and the Government of Botswana signed a RMB 27,792,763 loan agreement for the Francistown Housing Project (120 Units). This loan reportedly carried the following terms: a 13 year maturity, 6 year grace period, and 4% interest rate. Its final maturity date was September 21, 2016. This loan agreement was ratified by Botswana’s Parliament in 2004. 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 120 housing units (99 low-income and 21 medium-income housing units) in the city of Francistown. Complant Botswana (Pty) Ltd., a subsidiary of China National Overseas Engineering Corporation, was the contractor responsible for implementation. This project was completed in 2005.

Additional details

This project is also known as the Francistown BHC Houses - 120 Houses Project. Some sources indicate that this loan supported the construction of 85 houses rather than 120 houses. In the database of Chinese loan commitments that it released in July 2020, SAIS-CARI records the maturity length of this loan as 14 years. AidData relies on the maturity length (13 years) that is recorded by Botswana’s Ministry of Finance and Economic Development. SAIS-CARI records the face value of this loan as $2 million. AidData relies upon the face value (27,792,763, or ~$4 million) of the loan that is recorded by Botswana’s Ministry of Finance and Economic Development. As per coding guidelines, the more conservative estimate 8.4% interest is taken. Two government sources conflict - the Government Ratification Act and the Botswana Housing Corporation Report - as to the loan total. The first says P15,160,185 split between Francistown and Palapye Housing Projects, while the latter says P15,542,299. Since the Government source is actually referring to a split source of funding, the BHC source will be used as the transaction amount.

Number of official sources

5

Number of total sources

8