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China Development Bank provides additional $29.5 million loan for Upgrading of Mansa-Luwingu Road Project (Linked to Record ID#30719)
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Government of Zambia |
| Country | Zambia |
| Start Date | Jan 01, 2016 |
| End Date | Mar 06, 2028 |
| Duration | 4,448 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 53044 |
Grant Description
China Development Bank provides additional $29.5 million loan for Upgrading of Mansa-Luwingu Road Project In 2013, China Development Bank (CDB) and the Government of Zambia signed a $175.92 million loan agreement for the Upgrading of Mansa-Luwingu Road Project (captured via Record ID#30719).
The proceeds of the loan were to be used by the borrower to finance approximately 85% of the cost of a $206.96 million commercial contract between the Road Development Agency (RDA) of Zambia and China Henan International Cooperation Group Company Ltd., which was signed on December 27, 2012. The Government of Zambia was responsible for providing the remaining $31.04 million via counterpart funding.
As of 2014, CDB had disbursed $64.67 million from this loan.
The Government of Zambia soon realized it did not have enough tax or non-tax revenue to meet its initial counterpart funding commitment.
Therefore, in 2016, CDB issued an additional $29.5 million loan to the Government of Zambia (captured via Record ID#53044).
The Upgrading of Mansa-Luwingu Road Project had two components: the upgrading of a 175 kilometer M3 road from Mansa to Luwingu and upgrading 30 kilometers of urban roads from Mansa and Luwingu.
The purpose of the project was to more effectively connect Mansa province with Luwingu province, and thereby reduce the cost of exporting copper products, agricultural products and other goods. The project was also expected to generate 1,200 jobs and take approximately 40 months to complete. China Henan International Cooperation Group Company Ltd. was the contractor responsible for project implementation.
The project was ultimately completed on July 18, 2016.
Staff Comments
- This project is also known as the M3 Upgrading Project. The Chinese project title is 赞比亚205公里道路升级项目 or 曼萨-卢温古205公里道路升级项目 or 赞比亚曼萨－陆温谷205公里道路升级项目.
- For the time being, AidData assumes that the 2013 CDB loan agreement carried the same borrowing terms as the 2016 loan agreement [known as the Mansa-Luwingu Road Project (M3) Amendment].
- For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
Sources & References
- Mid-Year Economic Review
- Cabinet Approves Contracting of new Loans from Africa and China Development Banks
- 中国公司承建赞比亚道路完工交付使用
- China Development Bank Annual Report 2014
- 杨优明大使赴赞比亚卢阿普拉省考察河南国际承建公路项目
- 赞比亚205公里道路升级项目部举行升旗仪式和党员重温宣誓词活动
- 集团公司工作组在赞比亚要求做好巡视组反馈意见整改落实工作
- 赞比亚205公里道路升级项目部召开“八一”建军节座谈会
- Upgrading of Mansa-Luwingu Road in Zambia
- Annual Report 2017
- Ambassador Yang Youming Attends the Commissioning Ceremony of the Mansa-Luwingu Road
- PRESS STATEMENT BY THE CHIEF GOVERNMENT SPOKESPERSON ON THE DECISIONS MADE BY CABINET AT THE 2ND (SPECIAL) CABINET MEETING HELD AT MULUNGUSHI INTERNATIONAL CONFERENCE CENTRE ON MONDAY, 15TH FEBRUARY, 2016
- ANNUAL ECONOMIC REPORT 2016 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.
All Grantees
Government of Zambia
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