Skip to content

Overview

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

Commitments (Constant USD, 2023)$12,089,777
Commitment Year2002Country of ActivityNamibiaDirect Recipient Country of IncorporationNamibiaSectorGovernment And Civil SocietyFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2002
Start (actual)
Nov 14, 2007
End (actual)
Jul 13, 2010
First repayment (originally scheduled)
Dec 30, 2011
Last repayment (originally scheduled)
Dec 27, 2021

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

This project involved the construction of a new State House in the Auasblick suburbs outside of Windhoek. More detailed locational information can be found at https://www.openstreetmap.org/way/87668568.

Stakeholders

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

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

Government Agencies

  • China Ministry of Commerce

Receiving agencies

Government Agencies

  • Government of Namibia

Implementing agencies

Private Sector

  • Qingdao Construction Group Ltd.
  • Shenyang Engineering Supervision Consulting Company

Loan desecription

Chinese Government provides 55 million NAD interest-free loan - through December 2002 ETCA - for Presidential Palace Construction Project

Grace period10 yearsGrant element75.0516%Interest rate (t₀)0%Interest typeFixed Interest RateMaturity20 years

Narrative

Full Description

Project narrative

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 Record ID#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, supplementary terms for the construction contract were signed on June 28, 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. Areas of concern include the exclusion of local construction firms, land expropriations for security purposes, a defamation claim among architects, discrepancies in the national budget, and debate over its prioritization amid other urgent national issues like unemployment.

Staff comments

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.