CATIC provides $12 million supplier credit for MA60 Aircraft Acquisition Project as part of ‘buy two, get one free’ deal (Linked to Project ID#17584)

On November 4, 2004, China National Aero-Technology Import and Export Corporation (CATIC) and the Government of Zimbabwe signed a $12 million supplier's credit agreement for the MA60 Aircraft Acquisition Project (as captured via Project ID#62953). The borrower terms of the supplier's credit (loan) are unknown. However, it is known that the borrower was expected to use the proceeds of the loan to purchase two MA-60 aircrafts from China Aviation Industry Corporation (AVIC) as part of a larger ‘buy two, get one free’ deal. On May 4, 2005, the two 60-seat propeller planes were handed over to the Government of Zimbabwe. The planes were planned to fly as part of the Air Zimbabwe fleet with routes to Lusaka, Lilongwe, Beira, and Lubumbashi routes in the region, and the Kariba and Victoria Falls routes locally. Then, in July 2005, China’s Ministry of Commerce (MOFCOM) and the Government of Zimbabwe signed an Economic & Technical Cooperation Agreement (ECTA), which committed $6 million of grant funding for the acquisition of the third MA60 aircraft from AVIC (as captured via Project ID#17584). The third plane was handed over to the Government of Zimbabwe in early 2006. It was expected to service Hwange and the Transfrontier Parks among other routes in a bid to promote tourism in the country. The Government of Zimbabwe ultimately defaulted on its outstanding repayment obligations to CATIC under the supplier's credit agreement. As of 2018, all three MA60 aircraft (operated by the state-run Air Zimbabwe) were ‘grounded’ (i.e. taken out of service).

Additional details

1. The Chinese project title is 架新舟60基本型飞机 or 3架新舟60飞机的购机协议.

Number of official sources

10

Number of total sources

25