Chinese Government provides $22 million interest-free loan to Zambia for TAZARA Operations and Maintenance Project

In 1967, the Chinese Government provided an RMB 494 million interest-free loan 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. In 2015, the Chinese Government signed a $22 million interest-free loan to support the ongoing operations and maintenance of TAZARA.

Additional details

1. Since the borrowing terms of the loan are unavailable, AidData has set the maturity to 20 years by default and the 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 MOFCOM 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.

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