Overview

China Eximbank provides $40.7 million loan for Tsarasaotra-Ivato Road Rehabilitation Project (Linked to Record ID#52287)

Commitments (Constant USD, 2023)$41,004,360

Commitment Year•2018Country of Activity•MadagascarDirect Recipient Country of Incorporation•MadagascarSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: May 18, 2018

Start (actual): Feb 1, 2016

End (actual): Nov 2, 2018

First repayment: May 16, 2025

Last repayment: May 13, 2038

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The road is 11 km long and 12 meters wide and stretches from Ivato - Tsarasaotra; Boulevard de l'Europe - Village of La Francophonie. Ivato is located about 11 km northwest of Tsarasaotra. Tsarasaotra is located about 6 km north of Antananarivo, the capital city, which is in the Analamanga region in central Madagascar. More detailed locational information about the Tsarasaotra-Ivato road (Malagasy name: Lalana Tsarasaotra-Ivato) can be found at: https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-18.8082%2C47.4816%3B-18.8661%2C47.5189#map=12/-18.8281/47.5372. More detailed location information about the expressway from the Ivato International Airport (French name: Aéroport International d'Ivato) to the Boulevard de l'Europe can be found at: https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-18.7961%2C47.4734%3B-18.9008%2C47.5093#map=13/-18.8500/47.4862.

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 Madagascar

Implementing agencies

State-owned companies

China Harbour Engineering Co., Ltd. (CHEC)

Loan desecription

China Eximbank provides $40.7 million loan for Tsarasaotra-Ivato Road Rehabilitation Project

Grace period•7 yearsGrant element•56.0077%Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

On May 18, 2018, China Eximbank and the Government of Madagascar signed a $40,747,800 loan agreement for the Tsarasaotra-Ivato Road Rehabilitation Project. This project involved the construction of an 10.93 km road from Tsarasaotra to Ivato. The loan carried the following borrowing terms: 2% interest rate, 7 year grace period, 20 year maturity, 0.25% commitment fee, and 0.25% management fee. According to the Government of Madagascar, this loan was provided on “aid semi-concessional” terms. CHEC was the contractor responsible for implementation. Construction began in February 2016 and CHEC reportedly hired 104 Chinese engineers and technicians and 750 employees. This project was ultimately completed on November 2, 2018. An official project handover ceremony took place on November 5, 2021. CHEC completed much of the construction work for this project before China Eximbank had signed a loan contract with the Government of Madagascar. This led to a dispute between CHEC and Madagascar’s Ministry of Finance related to non-payment.

Staff comments

1. The French project title is Route Ivato-Tsarasaotra or Route Ivato-Tsarasaotra-Boulevard de l'Europe. The Chinese project title is 马达加斯加塔那那利佛伊瓦图—察哈绍察公路项目 or 伊瓦图—察哈绍察公路项目. 2. In 2017, China Eximbank provided a separate loan to finance the expressway connecting Ivato International Airport to Boulevard de l'Europe (as captured via Record ID#52287).