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China Eximbank agrees to provide loan for Phase 2 of the Northern Railway Line Extension Project (linked to Record ID#s #1314, #61034, and #61036)
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Government of Namibia |
| Country | Namibia |
| Start Date | Jan 01, 2007 |
| End Date | Feb 28, 2028 |
| Duration | 7,728 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 1334 |
Grant Description
China Eximbank agrees to provide loan for Phase 2 of the Northern Railway Line Extension Project In December 2007, China Eximbank and the Government of Namibia signed an RMB 1 billion concessional loan framework (recorded in the linked Record ID#1314), which identified several projects that would be funded according to a consistent set of terms and conditions (including the following borrowing terms: 4.27% interest rate, 15-year maturity, and 5-year grace period).
One of these projects was the Phase 2 of the Northern Railway Line Extension Project, which is recorded in this project.
RMB 645 million was reportedly set aside for three projects: Phase 2 of the Northern Railway Line Extension Project (recorded in this project), the Oshakati State Hospital Renovation Project (recorded in the linked Record ID#61034), and the Namibian Broadcasting Corporation Renovation Project (recorded in the linked Record ID#61036).
The breakdown of this funding between these three projects is unknown, so the RMB 645 million commitment for the three projects is recorded in this project.
Phase 2 of the Northern Railway Line Extension Project involved a 62 km railway extension in Northern Namibia from Ondangwa to Oshikango.
According to the Namibia’s Ministry of Works and Transport, Phase 2 of the Northern Railway Line Extension Project is now complete. However, it appears that this project was ultimately implemented without funding from China Eximbank.
The project was ready for implementation and Namibia’s Ministry of Works and Transport entered into a rail supply contract with the China Machinery and Equipment Import and Export Corporation (CMEC), with Teko Trading CC as the local representative.
However, after receiving an overpriced quote from CMEC for completion of the project, the Government of Namibia suspended its contract with CMEC.
He told a local newspaper that 'We did not suspend any agreements, we just told them that the terms were too burdensome for our financial situation.’
Staff Comments
AidData has coded this project as a pledge rather than a commitment as it is not clear that a subsidiary loan agreement was ever signed for Phase 2 of the Northern Railway Line Extension Project.
Sources & References
- http://209.88.21.36/opencms/export/sites/default/grnnet/OPDev1/Archive/Statements/2012/Final_Inauguration_of_Ondangwa_Oshikango_Railway_Line_Phase_II_5_July_2012_Ohangwena_Region.pdf
- China Gives Namibia Dressing Down
- Chinese Rails for Oshikango Railway, http://search.proquest.com.gate2.library.lse.ac.uk/docview/192456039/13EA87694AC5AEF3A8E/1?accountid=9630
- China Gives
- China Takes Away
- China heavily overcharges Namibia for railway projects
- Namibian
- Chinese trade enjoys rapid growth
- Northern Railway Line Extension Project
- Namibia overcharged by Chinese company
- Namibia: Railway Tender to Chinese Firm Heading to Court
- Namibia: Country Overcharged By Chinese Company
- Beijing in scanner scandal
- Chinese dictate terms for their loan, http://allafrica.com/stories/201203270581.html, http://allafrica.com/stories/201111180336.html
- CHINA–AFRICA ECONOMIC RELATIONS: THE CASE OF NAMIBIA 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.
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Government of Namibia
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