Chinese Government provides NAD 60 million interest-free loan for Social Housing Project (Linked to Project ID#62071)

On March 29, 2018, during Namibian President Hage Geingob's state visit to China, the two heads of state signed a letter of exchange in which China would finance a social housing project in Gobabis and Grootfontein. According to the Namibian Government's 2019/2020 Annual Report, the project was financed with a N$72 million grant (captured in project #62701) and an N$60 million interest free loan. The total cost of the project was N$132 and the investment will be split across the two towns. The Annual Report also states that a Note Verbale was signed, converting the interest-free loan into a grant after negotiations with China. As of August 2018, The Namibian reported that construction had not started because of "unfinished technical details." In July 2018, Chinese Ambassador Zhang told the same media outlet that Namibia had signed an agreement with China in 2017 to borrow the full N$120 million for this project. Neither this claim nor the aforementioned figures are confirmed by any official sources. This purpose of this project is to alleviate desperate housing shortages and involves building 200 affordable housing units in each town with each house costing close to 300,000 NAD.

Additional details

1. For the time being, AidData assumes that the standard MOFCOM borrowing terms for an interest-free loan apply: 20 year maturity, 10 year grace period, and 0% interest. 2. This project is also known as the Gobabis and Grootfontein Housing Construction Project.

Number of official sources

7

Number of total sources

16