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Overview

Chinese Government grants $2 million USD to help Zambia service debts to CATIC (Linked to ETCA #2198)

Commitments (Constant USD, 2023)$4,500,070
Commitment Year•2003Country of Activity•ZambiaDirect Recipient Country of Incorporation•ZambiaSector•Action Relating To DebtFlow Type•Grant

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2003
Start (actual)
Dec 4, 2003
End (actual)
Dec 4, 2003

Stakeholders

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

Funding agencies

Government Agencies

  • China Ministry of Commerce

Receiving agencies

Government Agencies

  • Government of Zambia

State-owned companies

  • China National Aero-Technology Import & Export Corporation (CATIC)

Loan description

Chinese Government grants $2 million USD to help Zambia service debts to CATIC (Linked to ETCA #2198)

Narrative

Full Description

Project narrative

On November 6, 2003 during a Zambian Presidential visit to China, government officials signed an Economic and Technical Cooperation Agreement (ETCA #2198) in which China granted $6 million USD to Zambia. According to a working paper from the African Economic Research Consortium (source ID 112042 p. 20), $2 million USD of the ETCA was used to service the Government of Zambia's debts to China National Aero-Technology Import and Export Corporation (CATIC). The $2 million USD check was officially handed over to the Zambian side on December 4, 2003. CATIC previously provided supplier's credits to Zambia for the acquisition of planes and earth-moving equipment. At the time of this ETCA, the Government of Zambia's outstanding debt obligation to CATIC was worth approximately $59,626,306.35 USD. As of December 2006, Zambia's indebtedness to CATIC made up 27.9% of all indebtedness to China.

Staff comments

One source identifies November 7, 2003 rather than November 6, 2003 as the day when the ETCA was signed.