Skip to content

Overview

Chinese Government provides AUD $4.752 million grant for acquisition of commercial ferry

Commitments (Constant USD, 2023)$3,294,750
Commitment Year2021Country of ActivityKiribatiDirect Recipient Country of IncorporationKiribatiSectorTransport And StorageFlow TypeGrant

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2021
End (actual)
Nov 19, 2022

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • China Ministry of Commerce

Receiving agencies

Government Agencies

  • Government of Kiribati

Implementing agencies

Private Sector

  • Zhoushan Ningshing Ship Building and Repairing, Co., Ltd

Loan desecription

Chinese Government provides AUD $4.752 million grant for acquisition of commercial ferry

Narrative

Full Description

Project narrative

On September 20, 2019, the Government of Kiribati announced that it was severing diplomatic ties with the Republic of China (‘Taiwan’) and establishing diplomatic ties with the People’s Republic of China (‘China’). On the same day, the PRC Government reportedly agreed — at least in principle — to donate two civil aviation aircraft and one commercial ferry (also known as a ‘tug and barge vessel’) to the Government of Kiribati. Kiribati’s President, Taneti Maamau, reportedly requested donations from the PRC for the purchase of commercial aircraft after rejecting an offer from Taiwan to provide loans for the purchase of the aircraft. Then, in 2021, the Chinese Government reportedly issued a grant worth $17,532,549.04 to the Government of Kiribati for the purchase of an aircraft from Embraer (the Empresa Brasileira de Aeronáutica) in Brazil (captured via Record ID#90098). In December 2019, the first Embraer E190-E2 arrived in Kiribati (as part of an order for two aircraft from December 2018). The Chinese government also issued a grant worth AUD $4.752 million for the acquisition of a 24 meter tug and 34 meter cargo barge vessel for the Kiribati National Shipping Line (captured via captured via Record ID#92209). On November 19th, 2022, the handover ceremony for the tug and barge vessel donation occurred at the KNSL Wharf. H.E. Ambassador Tang Songgen was very delighted to join Hon. Vice President Teuea Toatu, Hon. Minister of MICT Tekeeua Tarati also attend the event. According to Tekeeua Tarati, Chinese Ambassador to Kiribati Tang Songgen said that the donation was a cooperation outcome of the two sides in jointly building the Belt and Road and implementing the Global Development Initiative, which aligns with Kiribati's "20 Year Vision" strategy.

Staff comments

1. Taiwanese reports suggest that the Chinese Government donated two Comac C919s (Chinese aircraft) and one Boeing planes. A Taiwanese news report indicates that Kiribati received one Comac C919 (a Chinese airplane) worth $30 million and a Boeing 737. Foreign Policy reports the monetary value of these aircraft to be $60 million. However, AidData has not independently corroborated these claims, which warrant further investigation. 2. The Lowy Institute identifies a grant commitment of $42,124,247.13 in 2020 for the acquisition of two Embraer aircraft and a grant disbursement of $17,532,549.04 in 2021 for the acquisition of one Embraer aircraft. The Lowy Institute project identification number for the aircraft donation is KI-TW-20-21-3. 3. The Government of Kiribati budget code for the donation is 2404K075. 4. The Kiribati National Shipping Line (KNSL) is the only Government owned shipping company that provide shipping service in Kiribati prior to the entry of the private sector. 5. As of July 2022, the $6 million grant commitment from the Chinese Government for the acquisition of a commercial ferry was not captured in the Lowy Institute’s Pacific Aid Map.