Active Development AidData Chinese Aid

Chinese Government provides RMB 20 million interest-free loan through December 2006 ETCA for unspecified development projects

¥20M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Namibia
Country	Namibia
Start Date	Dec 18, 2006
End Date	Jul 19, 2030
Duration	8,614 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`1308`

Grant Description

Chinese Government provides RMB 20 million interest-free loan through December 2006 ETCA for unspecified development projects On December 18, 2006, the Chinese Government and the Government of Namibia signed an Economic and Technical Cooperation Agreement (ETCA), which committed an RMB 20 million interest-free loan for an unspecified set of development projects.

The agreement was signed by Namibian Finance Minister Saara Kuugongelwa-Amadhila and Chinese Ambassador to Namibia Liang Yinzhu.

In terms of their agreement, the money will be used for projects and programs identified by the Namibian Government as per national development objectives.

The visit to Namibia by a Chinese Commerce Ministry delegation and the interest-free loan is a follow-up on the FOCAC Summit that was held in Beijing at the beginning of November 2006. It is not clear whether, when, or how the proceeds from this loan were utilized.

📋 Staff Comments

This loan was very likely committed through an Economic and Technical Cooperation Agreement (ETCA), so AidData has coded it as an umbrella project for the time being. It is not identified as an outstanding debt obligation of the Namibian Government in the Summary Report of the Auditor-General on the Account of the Government of Namibia for the Financial Year Ended 31 March 2014. However, SAIS-CARI records it as an official loan commitment. The Factiva source records the value of the loan as being R18.2 million, but AidData records the transaction amount which is recorded in the SAIS-CARI source.
Since loan 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.

📚 Sources & References

Notes following Briefing by Deputy Foreign Minister Aziz Pahad
Govt Signs Multi-Million Chinese Loan
Notes following Briefing by Deputy Foreign Minister Aziz Pahad, http://global.factiva.com/aa/?ref=AFNWS00020061219e2cj000mx&pp=1&fcpil=en&napc=S&sa_from=
Namibia: Govt signs multi-million Chinese loan
Summary Report of the Auditor-General on the Accounts of the Government of Namibia for the Financial Year Ended 31 March 2014 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.