Completed Development AidData Chinese Aid

Chinese Government provides RMB 81.48 million interest-free loan for Parliament Building Construction Project (Linked to Record ID#55597)

¥81.48M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Lesotho
Country	Lesotho
Start Date	Nov 01, 2005
End Date	Nov 17, 2029
Duration	8,782 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`1096`

Grant Description

Chinese Government provides RMB 81.48 million interest-free loan for Parliament Building Construction Project During an official visit to Beijing in November 2005, Chinese President Hu Jintao pledged to grant funds and build a new parliament building in Lesotho on Mpilo Hill.

China’s Ministry of Commerce subsequently provided an interest-free loan worth approximately RMB 81.48 million for the Parliament Building Construction Project.

The proceeds of this loan were used to finance a commercial (EPC) contact between Yanjian Group and Lesotho’s Ministry of Public Works and Transport, which was signed on June 8, 2007. The project involved the construction of a 5-story building on Mpilo Hill covering 7116.6 square meters. A formal groundbreaking ceremony took place on October 29, 2007.

However, construction did not begin until June 17, 2007. The construction period was expected to take 20 months. However, several logistical delays slowed project implementation. The completed building was officially handed over to the Government of Lesotho on June 27, 2012.

The Chinese Government subsequently dispatched a technical assistance team to maintain this building (as captured via Record ID#55597).

The interest-free loan that supported the construction of the building was also written-off in 2018 (as captured via Record ID#55890).

📋 Staff Comments

The Chinese project title is 莱索托议会大厦项目 or 莱索托议会大厦项目 or 我援莱议会大厦工程 or 莱索托议会大厦.
Since borrowing terms for the interest-free loan are unavailable, AidData has set maturity period 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 period 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.
This record has been marked as having evidence of financial distress because it was subject to debt forgiveness captured in record #55890.

📚 Sources & References

http://mail.lena.gov.ls/index.php?model=headline&function=display&text_id=34006
China Hands Over New Parliament Building, http://www.hljiam.ac.cn/news/5828.html, http://www.fmprc.gov.cn/chn/pds/wjdt/zwbd/t847556.htm, http://global.factiva.com/aa/?ref=EC00000020100805e6870001i&pp=1&fcpil=en&napc=S&sa_from=
PM Launches Construction of New Parliament Building
Remarks by H.E. Ambassador HU Dingxian at the Reception Marking the 62nd Anniversary of the Founding of the People's Republic of China
中国驻莱索托大使仇伯华和莱首相为中国援建的议会大厦项目奠基
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Budget speech to Parliament for the 2006/2007 Fiscal Year
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莱索托副首相参观我援莱议会大厦工程
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Lesotho 2011
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The Contract on the Project of Lesotho Parliament Building Funded by the Government of the People's Republic of China Signed
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