Narrative
Full Description
Project narrative
On March 25, 2013, the Chinese President and the Tanzanian President witnessed representatives from China Development Bank (CDB) and Tanzania's Ministry of Finance sign a financing framework agreement for strategic infrastructure development (or 坦桑尼亚基础设施建设战略发展) in Tanzania. Then, after months of negotiations, on December 24, 2014, CDB's Guizhou Branch signed a follow up agreement with Tanzania's Ministry of Finance. OnDecember 30, 2014, CDB and Tanzania's Ministry of Finance signed a commercial loan agreement for unspecified infrastructure investment projects in Tanzania. The loan carried the following borrowing terms: a 6.75 year maturity, a 3.25 year grace period, and an interest rate of 5.9127%. Its other borrowing terms are unknown. According to the Tanzania National Audit Office, as of June 2015, at least 414.4 billion TZS (approximately $258 million USD in 2017 prices) was disbursed. According to a budget speech from the Tanzania Minister of Finance, the entire balance was expected to be fully drawn down by June 30, 2015.
Staff comments
1. This CDB loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. Nor is it included in the Chinese Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020. However, the Government of Tanzania has acknowledged that it contracted this loan from CDB in official records. It is also recorded in the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 2. The loan's interest rate (5.9127%), maturity (6.75 years), and grace period (3.25 years) are drawn from the World Bank's Debtor Reporting System. See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 and https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 3. Some sources suggest that this loan may have been a syndicated loan with CDB participation (see https://www.tahota.com/Kunming/CN/05/bae431948c340d28.aspx and https://www.dropbox.com/s/2mhgqizzfd54457/%E6%B3%B0%E5%92%8C%E6%B3%B0%E5%BE%8B%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80.pdf?dl=0). However, a lawyer who advised on the transaction confirmed to AidData in July 2023 that "though the documentation was on a syndicated basis, CDB was the sole original lender." 4. Norton Rose Fulbright advised on the transaction. 5. AidData has set the umbrella field to 'False' since no specific subsidiary projects were identified but the borrower made significant drawdowns under the loan agreement.