Chinese Government grants $2 million USD to help Zambia service debts to CATIC (Linked to ETCA #2198)
Commitment amount
$ 4872127.480757075
Adjusted commitment amount
$ 4872127.48
Constant 2021 USD
Summary
Funding agency [Type]
China Ministry of Commerce [Government Agency]
Recipient
Zambia
Sector
Action relating to debt (Code: 600)
Flow type
Grant
Infrastructure
No
Category
Project lifecycle
Description
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.
Additional details
One source identifies November 7, 2003 rather than November 6, 2003 as the day when the ETCA was signed.
Number of official sources
1
Number of total sources
2
Details
Cofinanced
No
Direct receiving agencies [Type]
Government of Zambia [Government Agency]
Indirect receiving agencies [Type]
China National Aero-Technology Import & Export Corporation (CATIC) [State-owned Company]