China Eximbank agrees to provide loan for Phase 1 Road Construction in Eiseb Block (Linked to projects #68255 and #1314)
Pledged amount
$ 29622831.50499707
Adjusted pledged amount
$ 29622831.50499707
Constant 2021 USD
Not recommended for aggregates
This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Namibia
Sector
Transport and storage (Code: 210)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
Yes
Category
Project lifecycle
Description
On February 5, 2007 on an official tour across Africa, Chinese President Hu Jintao pledged to provide an RMB 1 billion concessional loan facility to be used at the discretion of the Government of Namibia (captured in project #1314). The following borrowing terms would apply to subsidiary loans obtained through this facility: a 4.27% interest rate, a 15 year maturity, and a 5 year grace period. Then, in December 2007, China Eximbank and the Government of Namibia signed an RMB 1 billion concessional loan framework agreement, which identified several projects that would be funded according to a consistent set of terms and conditions. This project records the committed $16,463,857 loan for the Phase 1 Road Construction in Eiseb Block, and is linked to project #68255, which records a loan committed for the Eiseb Block Farm Development Project. Projects part of this concessional loan framework agreement reportedly included an RMB 300 million loan for the Modern Customs Scanning Equipment Acquisition Project (recorded in project #1241), an RMB 44 million loan for the Electronics Document and Record Management Systems (EDRMS) Project (recorded in project #1242), a $16.4 million loan for road construction in Eiseb Block Phase 1 (recorded in this project), and a $748,357 loan for Namibia Institute of Pathology (NIP) laboratories (recorded in project #61032). An additional RMB 645 million was reportedly set aside for three projects: Phase 2 of the Northern Railway Line Extension Project (recorded in project #1334), the Oshakati State Hospital Renovation Project (recorded in project #61034), and the Namibian Broadcasting Corporation Renovation Project (recorded in project #61036). This framework agreement was signed by China’s Ambassador to Namibia Ren Xiaoping and Nambia’s Minister of Finance Saara Kuugongelwa-Amadhila. However, in July 2009, Namibia’s Permanent Secretary of Finance Calle Schlettwein announced that he had notified the Chinese Government that the borrowing terms of the RMB 1 billion loan facility (recorded in project #1314) were too financially onerous for the Government of Namibia. He told a local newspaper that 'We did not suspend any agreements, we just told them that the terms were too burdensome for our financial situation.’
Additional details
AidData has coded this project as a pledge rather than a commitment as it is not clear that a subsidiary loan agreement was ever signed for the Phase 1 of Road Construction in Eiseb Block Project.
Number of official sources
2
Number of total sources
6
Details
Cofinanced
No
Direct receiving agencies [Type]
Government of Namibia [Government Agency]
Loan Details
Maturity
15 years
Interest rate
4.27%
Grace period
5 years
Grant element (OECD Grant-Equiv)
18.2511%