Active Development AidData Chinese Aid

China pledges to loan 1.5 billion TZS interest-free for a Housing Construction Project in Zanzibar

$600K USD

Funder	China Ministry of Commerce
Recipient Organization	Government of Tanzania
Country	Tanzania
Start Date	May 01, 2000
End Date	May 10, 2033
Duration	12,062 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`1357`

Grant Description

China pledges to loan 1.5 billion TZS interest-free for a Housing Construction Project in Zanzibar On May 1, 2000, China earmarked Tshs1.5 billion for an interest-free loan to construct houses for the people in the Isles. It is a part of a Tshs11 billion loan to be given to Zanzibar for other projects.

Around 40-70 percent of the urban population in Tanzania live in poorly serviced squatter settlements. The rest of the loan will be going to mainland projects. It is unclear whether these funds were ever formally committed and then disbursed.

📋 Staff Comments

Interest-free loans are typically agreed upon through ETCAs which are financed by the Chinese Ministry of Commerce. 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

China Funds Construction Of Low Cost Houses In Zanzibar.
China Funds Construction Of Low Cost Houses In Zanzibar
KEYNOTE SPEECH BY HON. DR. MARY M. NAGU (MP)
MINISTER OF STATE
PRIME MINISTER'S OFFICE
INVESTMENT AND EMPOWERMENT OF THE UNITED REPUBLIC OF TANZANIA ON THE OCCASION OF CELEBRATING THE 65TH NATIONAL DAY ANNIVERSARY OF THE PEOPLE'S REPUBLIC OF CHINA, 28TH SEPTEMBER 2014 AT THE CHINESE EMBASSY
DAR ES SALAAM 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.