Skip to content
AidData logo

Overview

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

Commitments (Constant USD, 2023)$7,555,146
Commitment Year•2003Country of Activity•BotswanaDirect Recipient Country of Incorporation•BotswanaSector•Other Social Infrastructure And ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2003
End (actual)
Dec 31, 2005
First repayment (originally scheduled)
Dec 30, 2008
Last repayment (originally scheduled)
Dec 29, 2015

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

This project involved the construction of 120 housing units in the city of Francistown. More detailed information can be found at: https://www.openstreetmap.org/node/240504014

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 Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Botswana

Implementing agencies

State-owned companies

  • Botswana Housing Corporation
  • China Overseas Engineering Group Co., Ltd. (COVEC)
  • Complant Botswana (Ptya) Ltd.

Loan desecription

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

Grace period•6 yearsGrant element•34.6478%Interest rate (t₀)•4%Interest type•Fixed Interest RateMaturity•13 years

Narrative

Full Description

Project narrative

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.

Staff comments

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.