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

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.

Additional details

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 Project ID#52287).

Number of official sources

11

Number of total sources

23