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Chinese Government issues N$30 million interest-free loan to TransNamib for acquisition of 4 diesel locomotives and 1 DMU passenger train
| Funder | China Ministry of Commerce |
|---|---|
| Recipient Organization | TransNamib Holdings Limited |
| Country | Namibia |
| Start Date | Jan 01, 2004 |
| End Date | Nov 23, 2033 |
| Duration | 10,919 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 23105 |
Grant Description
Chinese Government issues N$30 million interest-free loan to TransNamib for acquisition of 4 diesel locomotives and 1 DMU passenger train In 2004, the Chinese Government and TransNamib — a state-owned railway enterprise in Namibia — signed a N$30 million interest-free loan to facilitate TransNamib’s acquisition of 4 diesel locomotives and 1 DMU passenger train.
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. This project was completed on July 25, 2004, when the products were shipped from China to Namibia.
A few weeks after their handover, the locomotives reportedly suffered from "chronic mechanical problems," lack of training among local mechanics, and lack of local parts. The locomotives were later sold in 2014.
Staff Comments
The loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. 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
- http://www.namibian.com.na/index.php?id=28&tx_ttnews%2525255Btt_news%2525255D=6777&no_cache=1
- China sends railway experts as part of TransNamib project
- China Exports Locomotives to Namibia
- China sends railway experts as part of TransNamib project
- 国际, “中国南车造”机车车辆非洲受青睐
- 中国首次向纳米比亚出口铁路机车车辆
- 中国首次向纳米比亚出口铁路机车车辆
- Internationalization
- Namibia and China: Profile and appraisal of a relationship
- China Returns to Africa: A Rising Power and a Continent Embrace
- TransNamib's Chinese Locomotives Declared Unfit
- Transnet's new Chinese locomotives 'fail first test' 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
TransNamib Holdings Limited
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