Active Development AidData Chinese Aid

Chinese Government signs Economic and Technical Cooperation Agreement loaning 65.5 billion ZMK interest-free for unspecified projects in December 2012 (Linked to ETCA #31121)

$65.5M USD

Funder	China Ministry of Commerce
Recipient Organization	Government of Zambia
Country	Zambia
Start Date	Dec 29, 2012
End Date	Jun 02, 2031
Duration	6,729 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`33579`

Grant Description

Chinese Government signs Economic and Technical Cooperation Agreement loaning 65.5 billion ZMK interest-free for unspecified projects in December 2012 On December 29, 2012, the Chinese Government and the Government of Zambia signed two Economic and Technical Cooperation Agreements (ETCA). One committed a 65.5 billion ZMK interest-free loan and the other was a 16 billion ZMK grant (ETCA #31121).

The proceeds of these agreements were supposed to be spent on poverty eradication and other unspecified projects.

The ETCAs were signed between Chinese Ambassador and Hon.Alexander Bwalya Chikwanda, Minister of Finance of the Republic of Zambia during a ceremony in Lusaka.

📋 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

Former Finance Minister cautions government debt
Zambia: China Happy With Nation's Economic Results
China gives Zambia K80 billion poverty reduction 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.