Chinese Government provides $5 million interest-free loan for the development of fish farms near Tyre (Linked to Record ID#40928)

📋 Staff Comments

1. The loan proceeds for project ID#40927 and project ID#40928 may have been drawn partially or fully from an Economic and Technical Cooperation Agreement (ETCA) that the Chinese Government and the Government of Lebanon signed on June 13, 1996. This ETCA committed a RMB 50 million interest-free loan with a maturity period of 20-years and a grace period of 10-years (see the ETCA at 'اتفاقية التعاون الاقتصادي والفني بين حكومة الجمهورية اللبنانية و حكومة جمهورية الصين الشعبية'). Lebanon’s Ministry of Finance identified the purpose of the ETCA as ‘SUPPORT ACTIVITIES TO AGRICULTURE AND POST-HARVEST CROP ACT’ (see 'China Loans and grants (1).xlsx').
2. Because China's Ministry of Commerce (MOFCOM) provides the vast majority of interest-free loans, and this project may have been funded through an ETCA (a MOFCOM financing mechanism), AidData has coded MOFCOM as the specific Chinese Government institution responsible for the provision of this loan.
3. Since the borrowing terms of the interest-free loan are unavailable, AidData has set the maturity 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 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 Loans and grants (1).xlsx
• China Lends Lebanon $6.0 Mln
• RE- Letter of Request for Information from AidData
• China Loans and Grants, اتفاقية التعاون الاقتصادي والفني بين حكومة الجمهورية اللبنانية و حكومة جمهورية الصين الشعبية
• China Lends Lebanon $6.0 Mln.
• CHINESE AID FOR TWO LEBANESE NATIONAL PROJECTS.
• Funding Agreements
• Memorandum of Understanding 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.