China provides $4.9 million interest free loan for economic development projects to Ethiopia
Commitment amount
$ 9229372.625
Constant 2017 USD
Not recommended for aggregates
This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.
Umbrella project
This project is classified as an "umbrella" project, and is connected to related projects.
Summary
Funding agency [Type]
China Ministry of Commerce [Government Agency]
Recipient
Ethiopia
Sector
Unallocated/unspecified (Code: 998)
Flow type
Loan
Concessional
Yes
Category
Project lifecycle
Description
On August 12, 2005, the governments of China and Ethiopia signed an a $4.9 million interest-free loan agreement at the Ministry of Finance and Economic Development in Ethiopia. The loan will be used to finance projects geared towards ensuring sustainable economic development. The status of these projects is uncertain. This loan may be part of a sum $2 billion of Chinese assistance to Ethiopia from 2002-2007, which was given in exchange for oil drilling rights.
Additional details
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
0
Number of unofficial sources
3
Details
Cofinanced
No
Receiving agencies [Type]
Government of Ethiopia [Government Agency]
Loan type
Interest-Free
Maturity
20 years
Interest rate
0.0%
Grace period
10 years
Grant element
75.05159755%
Gurarantee provided
No
Insurance provided
No