Narrative
Full Description
Project narrative
On June 28, 2003, China National Aero-Technology Import and Export Corporation (CATIC,中国航空技术进出口总公司) and the Government of Zimbabwe signed a $6,140,140 supplier credit agreement for the Phase 1 of the Rural Electrification Equipment Acquisition Project. The proceeds from this agreement were used to partially finance an $11 million contract between the Zimbabwe Electricity Supply Authority (ZESA) and CATIC for the acquisition of rural electrification equipment, including transformers, switchgears, circuit breakers and meters. CATIC allowed its borrower to repay the loan by depositing the foreign currency proceeds from tobacco sales into an escrow account. Phase 1 was officially completed and handed over to the ZESA authorities on November 2, 2004.
Staff comments
1. The Chinese project title is 第一期农村电网项目 or 的农村电网改造 or 津农村电网改造工程 (See: 吴邦国出席津电力公司进口中国设备移交仪式). 2. Several sources refer to a “$40 million” supplier credit, but these references may refer to the aggregate value of both CATIC supplier credits for Phase 1 and Phase 2 of the Rural Electrification Equipment Acquisition Project. 3. ZESA used an entity called the Rural Electrification Fund (REF) to facilitate the purchase of equipment rom CATIC. 4. The CATIC supplier's credit for Phase 2 of the Rural Electrification Equipment Acquisition Project is captured via Record ID#62609.