Active Development AidData Chinese Aid

China Provides 200 Million Birr Interest-Free Loan for Development Projects through ETCA (Linked to Record ID#30238, #60179)

$200M USD

Funder	China Ministry of Commerce
Recipient Organization	Ethiopia Ministry of Finance and Economic Development
Country	Ethiopia
Start Date	Sep 01, 2012
End Date	Dec 26, 2027
Duration	5,594 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`30239`

Grant Description

China Provides 200 Million Birr Interest-Free Loan for Development Projects through ETCA In September of 2012, the Chinese government gave a 256 million ETB monetary grant (Record ID#30238) and a soft loan totaling 23 million USD to Ethiopia. The loan provided for 200 million ETB in the form of an interest-free loan.

The money is for the support of development activities within the country, but it is unclear as to which projects will be financed. This financing is part of an Economic and Technical Cooperation Agreement (ETCA) (Record ID#60179).

The agreement was officially signed on October 29, 2012, by State Minister of Finance and Economic Affairs, Ahmed Shide, and Charge d'Affairs at the Chinese Embassy, Wei Hontian.

📋 Staff Comments

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 extends $25mn loan, grant to Ethiopia
Ethiopia signs 456m Birr grant, loan agreements with China (Oct 30, 2012)
ETHIOPIA SIGNS 456 MILLION BIRR GRANT AND LOAN AGREEMENTS WITH CHINA
China and Ethiopia to further cooperation 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.