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Overview

Chinese Government provides RMB 45 million interest-free loan to Zambia for 12th TAZARA Protocol (Linked to Record ID#73167)

Commitments (Constant USD, 2023)$11,437,597
Commitment Year•2004Country of Activity•ZambiaDirect Recipient Country of Incorporation•Multiple JurisdictionsSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 5, 2004
First repayment
Dec 29, 2013
Last repayment
Dec 28, 2018

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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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://www.openstreetmap.org/relation/14060545#map=7/-14.738/29.548

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 Zambia

Intergovernmental Organizations

  • Tanzania-Zambia Railway Authority (TAZARA)

Loan desecription

Chinese Government provides RMB 45 million interest-free loan to Zambia for 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

In 1967, the Chinese Government provided an RMB 494 million interest-free loan to the Government of Zambia for the construction of the 1860 km Tanzania–Zambia Railway (TAZARA), stretching from Dar‑es‑Salaam to Kapiri Mposhi. Since then, the Chinese Government has provided a series of grants and loans to support TAZARA by providing spare parts, fuel, technical assistance, passenger coaches, and locomotives. On November 5, 2004, the Chinese Government provided an RMB 45 million interest-free loan to support the ongoing operations and maintenance of TAZARA. This 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. It is unclear what has been done thus far with the funds, but the project appears to be untied.

Staff comments

1. This project is known as the 12th TAZARA Protocol. 2. This loan was part of a joint loan of $10.87 million (RMB 90 million) to the Zambian and Tanzanian governments to rehabilitate the Tanzania-Zambia Railway (TAZARA). Each country was set to receive $5.4 million (RMB 45 million), of which $1 million was earmarked for the rehabilitation of TAZARA. The loan to the Government of Tanzania is recorded via Record ID#73167.