Skip to content
AidData logo

Overview

Chinese Government cancels RMB 247 million of the Government of Zambia’s outstanding TAZARA debt obligations (Linked to Record ID#1931)

Commitments (Constant USD, 2023)$43,423,660
Commitment Year•2011Country of Activity•ZambiaDirect Recipient Country of Incorporation•ZambiaSector•Action Relating To DebtFlow Type•Debt forgiveness

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2011
Start (actual)
Jan 19, 2011
End (actual)
Jan 19, 2011

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

Loan description

Chinese Government cancels RMB 247 million of the Government of Zambia’s outstanding TAZARA debt obligations (Linked to Record ID#1931)

Narrative

Full Description

Project narrative

In 1967, the Chinese Government provided an RMB 494 million interest-free loan to the Government of Zambia and an RMB 494 million interest-free loan to the Government of Tanzania for the construction of the 1860 km Tanzania–Zambia Railway (TAZARA), stretching from Dar‑es‑Salaam to Kapiri Mposhi. The railway, largely aimed at facilitating copper exports from land‑locked Zambia, was completed in 1975. It was the largest Chinese Government-financed construction project in Africa at the time. Then, on January 19, 2011, the Government of Zambia and the Government of Tanzania were both in arrears on their respective loans, and the Chinese Government agreed to cancel 50% of their outstanding debt obligations. More specifically, the Chinese Government agreed to forgive 50% of the Government of Zambia’s outstanding debt obligations (approximately RMB 247 million or $37.5 million) associated with the Tanzania–Zambia Railway (TAZARA) Construction Project.

Staff comments

1. This project is not marked as an umbrella because the original loan is not captured in AidData’s dataset, so there is no risk of double counting. 2. The debt forgiveness that was granted to the Government of Tanzania is captured in Record ID#1931.