Completed Mixed AidData Chinese Aid

CATIC provides $27 million supplier credit for Phase 2 of the Rural Electrification Equipment Acquisition Project (Linked to Record ID#62609)

$27.02M USD

Funder	China National Aero-Technology Import & Export Corporation (CATIC)
Recipient Organization	Zimbabwe Electricity Supply Authority (ZESA)
Country	Zimbabwe
Start Date	Jan 01, 2005
End Date	May 24, 2028
Duration	8,544 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`17158`

Grant Description

CATIC provides $27 million supplier credit for Phase 2 of the Rural Electrification Equipment Acquisition Project In 2005, China National Aero-Technology Import and Export Corporation (CATIC,中国航空技术进出口总公司) signed a $27,015,002 supplier's credit agreement with the Government of Zimbabwe for Phase 2 of the Rural Electrification Equipment Acquisition Project.

According to a Parliament of Zimbabwe report, the loan matured in February 2016.

CATIC allowed its borrower to repay the loan by depositing the foreign currency proceeds from tobacco sales into an escrow account.

Upon taking a tobacco contract to raise foreign currency, Zesa was able to sign the agreement, and work was expected to start in early 2016.

However, Phase 2 of the project reportedly ran into problems during implementation because of foreign exchange shortages. Phase 2 was officially completed and handed over to the ZESA authorities on March 6, 2006.

📋 Staff Comments

The Chinese project title is 第二阶段农村电网项目 or 的农村电网改造 or 津农村电网改造工程.
Several sources refer to a “$40 million” supplier credit, but these references may refer to the aggregate value of both CATIC supplier credits for Phase 1 and Phase 2 of the Rural Electrification Equipment Acquisition Project (See: Zesa goes farming and China Blasts Sanctions).
ZESA used an entity called the Rural Electrification Fund (REF) to facilitate the purchase of equipment from CATIC.
The financing for Phase 1 of the Rural Electrification Equipment Acquisition Project between CATIC and the Government of Zimbabwe is captured via Record ID#62609.

📚 Sources & References

Zesa warns of power deficits power deficits
RURAL ELECTRIFICATION FUND UNDER THREAT
Wu Bangguo attended the handover cer emony of the import of Chinese equipment by Jin Electric Power Company
Talking Points for Consultation between Director-General Xu Jinghu and African Diplomatic Envoys in China
Zimbabwe receives new electrical equipment from China
Zimbabwe Parliament Debates
Wednesday, 1st November, 2006
吴邦国委员长出席津电力公司进口中国设备移交仪式
吴邦国出席津电力公司进口中国设备移交仪式
PARLIAMENT OF ZIMBABWE
Wednesday 10th February, 2016
许镜湖司长与非洲驻华使节磋商讲话要点
Zesa goes farming
China in Zimbabwe: exploring the political and economic impacts of Chinese engagement in the Zimbabwean crises
中国将成津巴布韦“首要投资国”
IDEOLOGY
DESPERATION FUEL GOZ,S TIES TO CHINA
Zimbabwe receives new electrical equipment from China
吴邦国、温家宝分别会见津巴布韦总统穆加贝
Zesa goes farming
Zimbabwe acquires new electrical equipment from China
Rural Centres Set for Growth
PARLIAMENT OF ZIMBABWE
Wednesday 10th February, 2016
The Dragon's Gift: The Real Story of China in Africa, www.siis.org.cn/Sh_Yj_Cms/.../2012711142130JPQ5.DOC
China Blasts Sanctions
A Research Report on Zimbabwe
Zim Companies Set to Clinch Major Deals
Chinese Loans to Africa Database
China and Zimbabwe: The Context and Contents of a Complex Relationship 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.