Completed Development AidData Chinese Aid

Chinese Government cancels $18.4 million of the Government of the STP’s outstanding debt obligations (Linked to Record ID#71266, #55639, #68381, and #55648)

$18.4M USD

Funder	China Ministry of Commerce
Recipient Organization	Government of São Tomé & Príncipe
Country	Sao Tome and Principe
Start Date	Apr 12, 2017
End Date	Mar 02, 2027
Duration	3,611 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`55467`

Grant Description

According to a 2018 Public Debt Management report published by São Tomé and Príncipe (STP)’s Ministry of Planning, Finance and the Blue Economy, $18.4 million of STP’s outstanding debt obligations to the Chinese Government were cancelled on April 12, 2017.

It is unclear which loans were forgiven; however, the IMF has characterized China's debt relief package to STP as involving 'pre-HIPC legacy arrears to China of US$18.4 million.' This action was the result of the resumption of bilateral ties between the two countries in late 2016.

📋 Staff Comments

SAIS-CARI identifies the value to the debts that were cancelled as $28 million. The IMF identifies the value to the debts that were cancelled as $18.4 million. AidData relies on the $18.4 million estimate reported by the Government of São Tomé and Príncipe’s Ministry of Planning, Finance and the Blue Economy.
This project is not marked as umbrella because the risk of double counting is low. AidData's dataset does not record any loans from China to São Tomé and Príncipe between 2000-2017, so the original loans were likely contracted before 2000.
The April 2017 meeting also produced several over agreements (as captured via Record ID#71266, #55639, #68381, and #55648).

📚 Sources & References

São Tomé signs a five-year co-operation agreement with China
DEMOCRATIC REPUBLIC OF SÃO TOMÉ AND PRÍNCIPE STAFF REPORT FOR THE 2018 ARTICLE IV CONSULTATION,
Sao Tome and Principe 2013 IMF Staff Report
RELATÓRIO ANUAL DE GESTÃO DA DÍVIDA PÚBLICA EM 2018
China dá 146 milhões dólares a São-Tomé e Príncipe
China : 146 milhões de dólares em donativos para STP
China vai disponibilizar “verbas importantes” para São-Tomé e Príncipe
São Tomé signs a five-year co-operation agreement with China
São Tomé e Príncipe: China vai doar USD 146 milhões nos próximos cinco anos - PM
中国捐赠1.46亿美元给圣多美和普林西比兴建基础设施
Addressing the causes of fiscal fragility
Democratic Republic of São Tomé and Príncipe: Staff Report for 2022 Article IV Consultation; Fourth Review Under the Extended Credit Facility Arrangement
Request for Waivers for Nonobservance of Performance Criteria
Modification of Performance Criteria and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for São Tomé and Príncipe 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.