Active Development AidData Chinese Aid

Chinese Government provides RMB 200 million loan — via ETCA — for unspecified development projects (Linked to Record ID#41150)

¥200M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Yemen
Country	Yemen
Start Date	Mar 29, 2004
End Date	Sep 04, 2026
Duration	8,194 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`41151`

Grant Description

Chinese Government provides RMB 200 million loan — via ETCA — for unspecified development projects In 2003, at the sixth session of the Joint Ministerial Committee, China announced that it has decided to raise its aid to Yemen by RMB 30 million and will also provide interest-free loans amounting to RMB 20 million to be used for development projects in Yemen, and which will be agreed upon in the near future.

On March 29, 2004, following discussions in Beijing, officials from the Chinese Government and the Government of Yemen reportedly signed an RMB 200 million soft loan (a loan where the interest rate is below the market rate) agreement for unspecified development projects. An RMB 30 million grant agreement was issued on the same day (see Record ID#41150).

📋 Staff Comments

The agreement that was signed was very likely an Economic and Technical Cooperation Agreement (ETCA). 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

THE YEMEN-CHINA ECONOMIC
COMMERCIAL
AND TECHNICAL RELATIONS DURING ALI ABDULLAH SALEH'S ADMINISTRATION FROM 1990 TO 2012
Yemen
China sign bilateral cooperation agreement 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.