Chinese Government provides 55 million NAD interest-free loan - through December 2002 ETCA - for Presidential Palace Construction Project (Linked to projects #1255 and #73237)

In December 2002, the Chinese Government and the Government of Namibia signed an Economic and Technical Cooperation Agreement (ETCA), which committed a 55 million NAD interest-free loan and an RMB 43 million grant for the Presidential Palace Construction Project. Under Secretary of Works in the Ministry of Works, Transport and Communication. Deputy Foreign Affairs Minister, Dr. Kaire Mbuende signed the agreement with his Chinese counterpart, Qiao Zonghua. This project captures the interest-free loan and the linked project #1255 captures the grant. The Presidential Palace Construction Project involved the construction of a new State House in the Auasblick suburbs outside of Windhoek. Qingdao Construction Group Corporation and Shenyang Northeast Engineering Construction Development Company were the contractors responsible for building and supervising the presidential residence building on the estate. The North Korean firm Mansudae Overseas Group was reportedly also involved in the construction process. A construction contract was signed on June 20, 2007. Project construction then began on November 14, 2007. On November 19, 2007, a formal groundbreaking ceremony took place. The project was officially completed and handed over the Namibian authorities on July 13, 2010. The Chinese project title is 援纳总统官邸项目 or 纳总统官邸项目 or 纳米比亚总统官邸项目. This project was plagued by accusations of corruption and inflated prices due to the selection of Chinese firms without public tender.

Additional details

On March 28, 2008, the Chinese Government and the Government of Namibia signed an exchange of letters related to the Presidential Palace Construction Project, which may have committed supplemental funding for this project. 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

8

Number of total sources

12