Overview

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

Commitments (Constant USD, 2023)$46,385,802

Commitment Year•2012Country of Activity•Africa, regionalDirect Recipient Country of Incorporation•Multiple JurisdictionsSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Mar 26, 2012

Start (actual): Dec 2, 2015

End (actual): Dec 2, 2015

First repayment (originally scheduled): Dec 29, 2021

Last repayment (originally scheduled): Dec 27, 2031

Geospatial footprint

Map overview

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This project facilitated the operations and maintenance of the Tanzania–Zambia Railway (TAZARA), which is an 1860 km railway that stretches from Dar‑es‑Salaam to Kapiri Mposhi. The railway crosses Tanzania in a southwest direction, leaving the coastal strip and then entering largely uninhabited areas of the vast Selous Game Reserve. The line crosses the TAN-ZAM highway at Makambako and runs parallel to the highway toward Mbeya and the Zambian border, before entering Zambia, and linking with Zambia Railways at Kapiri Mposhi. From sea level, the railway climbs to 550 meters (1,800 feet) at Mlimba, and then reaches its highest point of 1,789.43 meters at Uyole in Mbeya before descending to 1,660 meters at Mwenzo, the highest point in Zambia, and settling to 1,274.63 meters at Kapiri Mposhi. More detailed locational information can be found at https://en.wikipedia.org/wiki/TAZARA_Railway#/media/File:Railways_in_Tanzania.svg and https://www.openstreetmap.org/relation/14060545#map=7/-10.388/33.970

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

China Ministry of Commerce

Receiving agencies

Government Agencies

Government of Tanzania
Government of Zambia

Implementing agencies

Intergovernmental Organizations

Tanzania-Zambia Railway Authority (TAZARA)

Loan desecription

Chinese Government provides RMB 270 million interest-free loan for TAZARA 15th Protocol

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

Narrative

Full Description

Project narrative

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 (Record ID#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.

Staff comments

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.