Active Development AidData Chinese Aid

China signs and Economic and Technical Cooperation Agreement offering an interest-free loan to Tanzania

Funder	China Ministry of Commerce
Recipient Organization	Tanzania Ministry of Finance and Planning
Country	Tanzania
Start Date	Mar 24, 2013
End Date	Mar 11, 2033
Duration	7,292 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`30612`

Grant Description

China signs and Economic and Technical Cooperation Agreement offering an interest-free loan to Tanzania On March 24, 2013, President Xi Jinping paid a state visit to Tanzania.

During this visit, the Chinese Minister of Commerce signed an economic and technical cooperation agreement (ETCA) offering an interest-free loan to the Tanzania Ministry of Finance. The value of this loan is unclear. How this money was spent is unknown.

At the same meeting, officials also committed to the following projects: 30332, 30320, 30606, 30599, 30607, 30597, 30330, 30437, 30602, 30603.

📋 Staff Comments

This agreement was explicitly described as an ETCA, but essentially all interest-free loans coming from the Chinese Ministry of Commerce are delivered through ETCAs. 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

Tanzania
China sign Agreements; vow continued cooperation
China Aid to Boost National Budget
China Offers to Finance Projects Worth Sh1.28 Trillion
习近平同坦桑尼亚总统基奎特举行会谈时强调中坦发展互利共赢的全面合作伙伴关系 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.