MOFCOM provides interest-free loan for School of Excellence Construction Project (Linked to Project ID#59593, #66315, #59360, #30165)

Between 2012 and 2014, the Chinese Government signed three different Economic and Technical Cooperation Agreements (ETCAs) with the Government of Djibouti) in order to finance the School of Excellence Construction Project (or Basic Education Project or l’École d’excellence). The first ETCA signed in February 2012 (captured via Project ID#30165) provided an RMB 40 million interest-free loan. The second ETCA signed in January 2013 (captured via Project ID#66315) provided a grant of an unknown value. The third ETCA signed in January 2014 (captured via Project ID#59360) provided a $16.5 million grant. It is unclear how much funding from each ETCA was earmarked for the School of Excellence Project. The Chinese Government reportedly contributed RMB 66 million (about $10.7 million) in total for the School of Excellence Project. The purpose of the project was to construct the School of Excellence, which is located in PK13 district of Djibouti City, about 12 km outside of the capital. Hunan Province Design Institute Co., Ltd was the contractor responsible for project implementation. Construction began on June 16, 2015 and ended on December 15, 2016. The school was opened and put into use on 10 September 10, 2017. A formal project handover ceremony then took place on September 17, 2017. Project ID#85281 captures the loan derived from ETCA #30165. Project ID#59593 records the grant funding derived from ETCAs #66315 and #59360.

Additional details

1. Since the borrowing terms of the interest-free loan are unavailable, AidData has set 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 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. The Chinese project title is 援吉布提基础教育学校项目.

Number of official sources

8

Number of total sources

12