Overview

Chinese Government provides RMB 45 million interest-free loan to Tanzania for the 12th TAZARA Protocol (Linked to Record ID#73168)

Commitments (Constant USD, 2023)$11,437,597

Commitment Year•2004Country of Activity•TanzaniaDirect Recipient Country of Incorporation•TanzaniaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Nov 5, 2004

First repayment (originally scheduled): Dec 29, 2013

Last repayment (originally scheduled): Dec 28, 2018

Geospatial footprint

Map overview

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This project supported the Tanzania–Zambia Railway (TAZARA), which is an 1860 km railway that stretches from Dar‑es‑Salaam to Kapiri Mposhi. The railway crosses Tanzania in a southwest direction, leaving the coastal strip and then entering largely uninhabited areas of the vast Selous Game Reserve. The line crosses the TAN-ZAM highway at Makambako and runs parallel to the highway toward Mbeya and the Zambian border, before entering Zambia, and linking with Zambia Railways at Kapiri Mposhi. From sea level, the railway climbs to 550 meters (1,800 feet) at Mlimba, and then reaches its highest point of 1,789.43 meters at Uyole in Mbeya before descending to 1,660 meters at Mwenzo, the highest point in Zambia, and settling to 1,274.63 meters at Kapiri Mposhi. More detailed locational information can be found at https://en.wikipedia.org/wiki/TAZARA_Railway#/media/File:Railways_in_Tanzania.svg and https://sharemap.org/jkan/railway/Railways_in_Tanzania#!webgl and https://www.openstreetmap.org/relation/14060545

Stakeholders

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

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

Government Agencies

China Ministry of Commerce

Receiving agencies

Government Agencies

Government of Tanzania

Implementing agencies

Intergovernmental Organizations

Tanzania-Zambia Railway Authority (TAZARA)

Loan desecription

Chinese Government provides RMB 45 million interest-free loan to Tanzania for the 12th TAZARA Protocol

Grace period•10 yearsGrant element•69.2736%Interest rate (t₀)•0%Interest type•Fixed Interest RateMaturity•15 years

Narrative

Full Description

Project narrative

On November 5, 2004, the Chinese Ministry of Commerce signed an economic and technical cooperation agreement (ETCA) loaning RMB 45 million interest-free to the Government of Tanzania under the 12th TAZARA Protocol. The purpose of this loan was to support the ongoing operations and maintenance of TAZARA. The loan reportedly carried a 15-year maturity and a 10-year grace period. Tanzania and Zambia will draw down on the loan starting 2005 to 2009, while repayments start 2015 and end in 2019. This loan was part of a joint loan of $10.87 million USD (90 million Yuan) to Zambia and Tanzania to rehabilitate the Tanzania-Zambia Railway (TAZARA). Each country will receive $5.4 million USD (45 million Yuan), out of which $1 million USD would go towards the rehabilitation of TAZARA. The loan to Zambia is recorded in Record ID#73168.