Chinese Government provides RMB 50 million interest-free loan for TAZARA Operations and Maintenance Project in 2006 Protocol (Linked to Project ID#73170)

On June 23, 2006, the Government of Zambia and China's Ministry of Commerce (MOFCOM) signed an economic and technical cooperation agreement (ETCA), which committed and RMB 50 million ($6.25 million) interest-free loan to revitalize the Tanzania-Zambia Railway Authority (TAZARA). Chinese Government provided the RMB 50 million interest-free loan for the purchase of fuel and spare parts from third parties to support TAZARA as part of the 2006 Protocol. In 1967, the Chinese Government provided an RMB 494 million interest-free loan to TAZARA 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.

Additional details

1. Since the borrowing terms of the interest-free loan are unavailable, AidData has set the maturity to 20 years by default and grace period to 10 years by default, per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace. 2. Project ID#73170 is also part of the 2006 Protocol.

Number of official sources

7

Number of total sources

12