Completed Mixed AidData Chinese Aid

China Eximbank provides $89.9 million buyer’s credit loan for Medical Equipment and Supplies Project (Linked to Record ID#63444)

$89.96M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Zimbabwe
Country	Zimbabwe
Start Date	Mar 21, 2011
End Date	Jun 13, 2028
Duration	6,294 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`22062`

Grant Description

China Eximbank provides $89.9 million buyer’s credit loan for Medical Equipment and Supplies Project On March 21, 2011, China Eximbank and the Government of Zimbabwe signed a $89,955,000 buyer’s credit loan (BCL) agreement for the Medical Equipment and Supplies Project.

📋 Loan / Grant Terms

💰 Loan Amountcarries the following borrowing terms: an 11 year maturity (final maturity date: 2022)

📅 Maturity11 years

⏳ Grace Period4 years

It is backed by a Sinosure credit insurance policy.

This project involved the acquisition of NMR, CT, digital X-ray machines, ultrasound machines, anesthesia machines, incubators, medical carts, ambulances, and mobile clinic buses. China Machinery Engineering Corporation (CMEC) was the contractor responsible for implementation of the project.

The equipment was officially commissioned and handed over to the authorities at the Harare Central Hospital on March 5, 2015.

However, there are signs that the China Eximbank loan contracted by the Government of Zimbabwe for the Medical Equipment and Supplies Project has underperformed financially. As of 2018, the borrower had accumulated principal and interest arrears and penalties worth $31,729,633.19.

According to a report released by the Debt Management Office of Zimbabwe’s Ministry of Finance in mid-2022, the loan was still in arrears at the end of 2021.

By the end of 2021, total external debt arrears to China Eximbank included $13 million for the NetOne Expansion Phase 1 Project, $47 million for the NetOne Expansion Phase 2 Project, $67 million for the Rehabilitation of Municipal Water and Sewage Treatment Works Project (City of Harare Project), $7 million for the National Defence College Project, $54 million for the Victoria Falls Airport Renovation and Expansion Project, $3 million for the Robert G.

Mugabe International Airport Expansion Project, $0.5 million for Phase 2 of the TelOne Broadband Expansion Project, and $73 million for the Medical Equipment and Supplies Project. The loan’s amount outstanding (including principal, interest, and arrears) was $87,383,270.54 as of September 2021.

📋 Staff Comments

This project is also known as the Sinosure Medical Equipment Project. The Chinese project title is 津巴布韦医疗设备供货项目 or 医疗设备.
This project was financed as part of larger $566 million umbrella agreement, which is captured via Project ID#63444.
In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it identifies this project as being supported by a concessional loan with a 20-year maturity, 5-year grace period, and 2% interest rate. AidData records the lending terms that reported by the IMF and by Zimbabwe’s Ministry of Finance and Economic Development (in its communications with the National Assembly prior to loan ratification).
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
One official source (https://www.veritaszim.net/sites/veritas_d/files/gn%203053-3068.pdf) suggests that the loan's original maturity may have been 9-years rather than 11-years. This issue warrants further investigation, including the possibility of a 2-year maturity extension.

📚 Sources & References

China to lend Zimbabwe government $102 million
中国向津巴布韦提供近7亿美元贷款
Zimbabwe
China sign $585m in deals, 2019_Blue_Book_Combined (1)
中资项目助津巴布韦升级医疗设备
津巴布韦总统向CMEC帮助够得先进医疗设备表示感谢
驻津巴布韦大使林琳出席津方医疗设备启用仪式
NATIONAL ASSEMBLY HANSARD - 7 AUGUST 2012 VOL. 38 NO. 51
林琳大使出席津方医疗设备启用仪式
Zimbabwean President Attends the Handover Ceremony for CMEC-undertaken Medical Project
Roundup: China
Zimbabwe poised to enhance health cooperation
中国贷款的医疗设备升级津巴布韦医疗服务
NATIONAL ASSEMBLY HANSARD - 7 AUGUST 2012 VOL. 38 NO. 51
NATIONAL ASSEMBLY HANSARD - 7 AUGUST 2012 VOL. 38 NO. 51
Staff-Monitored Program: Letter of Intent
Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding
中资项目助津巴布韦升级医疗设备
Chinese Ambassador Lin Lin Attended The Commissioning Ceremony of Medical Equipment
林琳大使出席津方医疗设备启用仪式
NATIONAL ASSEMBLY HANSARD 15 JULY 2015 VOL 41 NO 54
Zimbabwe – 2013 Staff-Monitored Program, http://global.factiva.com/aa/?ref=AFNWS00020110324e73o000vw&pp=1&fcpil=en&napc=S&sa_from=
Govt
China Sign U.S.$700 Million Deals
Zimbabwe 2011 ARTICLE IV CONSULTATION
Chinese Loans to Africa Database
NATIONAL ASSEMBLY HANSARD 24 AUGUST 2022 VOL 48 NO 71, 2019 Blue Book Combined
STATEMENT OF PUBLIC DEBT - 2021
Zimbabwean Government GaZette extraordinary, 18th December, 2020
ZWE ANNUAL PUBLIC DEBT BULLETIN 2021
Govt
China Sign U.S.$700 Million Deals 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 Zimbabwe

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