Completed Development AidData Chinese Aid

China Eximbank provides RMB 250 million loan for Railway Equipment Acquisition Project

¥250M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Namibia
Country	Namibia
Start Date	Jan 01, 2005
End Date	Feb 20, 2033
Duration	10,277 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`131`

Grant Description

China Eximbank provides RMB 250 million loan for Railway Equipment Acquisition Project In November 2005, China Eximbank and the Government of Namibia’s Ministry of Finance signed an RMB 250 million loan agreement for a Railway Equipment Acquisition Project.

Namibian President Hifikepunye Pohama and Chinese Politburo member Li Chang Chun witnessed the signing of the agreement.

📋 Loan / Grant Terms

💰 Loan Amountcarried an interest rate of 3%

According to "Summary Report of the Auditor-General on the Account of the Government of Namibia for the Financial Year Ended 31 March 2014", the final maturity date of the loan is March 21, 2021.

The Government of Namibia used the proceeds of the loan to on-lend to TransNamib (a state-owned railway enterprise in Namibia) in order to facilitate its acquisition of 17 diesel locomotives and approximately 207 train wagons.

China Railway Materials Export and Import Company (now known as China Railway Materials Group Corporation) and China South Locomotive & Rolling Stock Corp., Ltd. were the contractors responsible for implementation of the project. On January 25, 2007, 207 train wagons were delivered to Namibia. Then, on June 4, 2007, a batch of (8) diesel locomotives was delivered to Namibia.

As of May 2008, TransNamib reported that it had received all 17 diesel locomotives and they were all operational. This project is completed.

Prior to this, China had sold and sent 4 locomotives to TransNamib, which reportedly suffered from "chronic mechanical problems," lack of training among local mechanics, and lack of local parts. These were later sold in 2014. Conversely, TransNamib reported that the latest 17 locomotives were operational.

The Chinese project title is 车辆股份有限公司向纳米比亚出口17台机车的项目 or 南车出口纳米比亚铁路货车项目.

📋 Staff Comments

In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not identify the borrowing terms of this loan. AidData relies on the borrowing terms (interest rate of 3%, maturity of 15-years, and grace period of 5-years) that are reported by Namibia’s Ministry of Finance.

📚 Sources & References

http://www.namibian.com.na/index.php?id=28&tx_ttnews%2525252525255Btt_news%2525252525255D=49387&no_cache=1
Namibia
China sign cooperation ties, http://business.highbeam.com/3548/article-1G1-139003122/namibia-china-sign-accords
Namibian president plans visit to China
Stronger Ties to China
Actively Implement Outcomes of Summit - Namibia Travel Notes (Two)
China Gives
China Takes Away
Guest Post: Desert Mirage: Fact-checking China in Namibia
Natau guns for ousting of TransNamib CEO
TransNamib wants N$2b from GRN to stay afloat
Participatory Review and Evaluation of Co-operation between Namibia and Sweden in the Transport and Communications Sectors
The Navy government held a grand handover ceremony for the rolling stock imported from China.
Events in 2007
Namibia: Transnamib 'Happy' With Chinese Trains
Govt borrows N$204m to bail out TransNamib
Namibia: China Lends Transnamib Millions to Buy Locomotives
Schlettwein reveals how much Namibia owes China
四方机车股份公司向纳米比亚出口17台机车2020年
TransNamib Imports Chinese Locomotives
Namibia and China: Profile and appraisal of a relationship
TransNamib's Chinese Locomotives Declared Unfit
Summary Report of the Auditor-General on the Account of the Government of Namibia for the Financial Year Ended 31 March 2014
China Returns to Africa: A Rising Power and a Continent Embrace
Transnet's new Chinese locomotives 'fail first test'
纳米比亚2007年大事记
CHINA–AFRICA ECONOMIC RELATIONS: THE CASE OF NAMIBIA
SUMMARY REPORT OF THE AUDITOR-GENERAL (FY ENDED 31 MARCH 2011)
SUMMARY REPORT OF THE AUDITOR-GENERAL (FY ENDED 31 MARCH 2012)
SUMMARY REPORT OF THE AUDITOR-GENERAL (FY ENDED 31 MARCH 2013) 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.

All Grantees

Government of Namibia

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