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Overview

Chinese Government provides $3.4 million interest free loan for textile factory in Awassa

Commitments (Constant USD, 2023)$7,896,574
Commitment Year•2001Country of Activity•EthiopiaDirect Recipient Country of Incorporation•EthiopiaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2001
Start (actual)
Jan 5, 2001
End (actual)
Jan 5, 2001
First repayment (originally scheduled)
Dec 30, 2010
Last repayment (originally scheduled)
Dec 27, 2020

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The Awassa Textile factory is located in Awassa, the capital of the Southern National Nationalities Peoples' state. More detailed locational information can be found at https://www.google.com/maps/place/Awassa+Textile+Factory+PLC/@7.0340754,38.4988953,17z/data=!3m1!4b1!4m5!3m4!1s0x17b14f7228b4dcc9:0x1ec88682e8255d52!8m2!3d7.0340754!4d38.501084 and https://www.google.com/maps/place/Awassa+Textile+Factory+PLC/@7.0340754,38.501084,3a,75y,90t/data=!3m8!1e2!3m6!1sAF1QipO_HUDo4UQTGjnwzCwkWQCZQQZkx7ul11Glphb9!2e10!3e12!6shttps:%2F%2Flh5.googleusercontent.com%2Fp%2FAF1QipO_HUDo4UQTGjnwzCwkWQCZQQZkx7ul11Glphb9%3Dw152-h86-k-no!7i5312!8i2988!4m5!3m4!1s0x17b14f7228b4dcc9:0x1ec88682e8255d52!8m2!3d7.0340754!4d38.501084 and https://www.openstreetmap.org/way/393113704

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

Government Agencies

  • China Ministry of Commerce

Receiving agencies

Government Agencies

  • Government of Ethiopia

Loan desecription

Chinese Government provides $3.4 million interest free loan for textile factory in Awassa

Grace period•10 yearsGrant element•75.0516%Interest rate (t₀)•0%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

In 2001, the China's ambassador to Ethiopia, Ai Ping, announced that the Chinese government had supplied an interest-free loan of 3.4 million USD to a textile factory in Awassa, the capital of the Southern National Nationalities Peoples' state, in support of its production expansion program. Ethiopia's Awassa Textile Share Company is one of the largest textile mills in the country. The Awassa Textile factory is located in Awassa, the capital of the Southern National Nationalities Peoples' state.

Staff comments

Some sources indicate that two different interest-free loans were provided in 2001: a $2.4 million loan and a $1 million loan. Also, as the Awassa Textile factory still operates today, this project has been status-coded as complete. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.