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

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.

Additional details

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 Project ID#73167.

Number of official sources

1

Number of total sources

5