Chinese Government provides RMB 270 million interest-free loan for TAZARA 15th Protocol (linked to #30287)

On March 26, 2012, the Chinese Government signed the 15th Protocol of Economic and Technical Cooperation Agreement (ETCA) with the Governments of Zambia and Tanzania, and provided an RMB 270 million ($42.6 million USD) interest-free loan to support the ongoing operations and maintenance of TAZARA. The proceeds from this loan were used to support the procurement and supply of 18 passenger coaches and accompanying consumables, four new main line locomotives, two shunting locomotives, two rescue cranes and various lifting equipment. This loan is part of the 15th Protocol of Economic and Technical Cooperation Agreement (ETCA) between China, Tanzania, and Zambia which also provided a $23.5 million USD grant (Project #30287). On December 2, 2015, the handover ceremony of 18 passenger cars and 4 mainline locomotives was held at Tanzania Dashi Railway Station. The total contribution of the 15th protocol is $66.2 million USD. The money provided went toward different projects to facilitate the rehabilitation. In November of 2012, $42 million went toward 12 separate projects including: updating 42 coach cars, four new locomotives, two diesel shunting locomotives, 30,000 wooden sleepers, track maintenance vehicles, and staff training. In 1967, the Chinese Government provided an RMB 494 million interest-free loan to the Government of Zambia for the construction of the 1860 km Tanzania–Zambia Railway (TAZARA), stretching from Dar‑es‑Salaam to Kapiri Mposhi. Since then, the Chinese Government has provided a series of grants and loans to support TAZARA by providing spare parts, fuel, technical assistance, passenger coaches, and locomotives.

Additional details

The recipient of the project is coded as Africa, Regional because the financing is directed towards both the Government of Zambia and the Government of Tanzania, with no clear breakdown. 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.

Number of official sources

7

Number of total sources

17