Active Mixed AidData Chinese Aid

China Eximbank provides $30 million loan for an unspecified defense project

$30M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Zambia
Country	Zambia
Start Date	Jan 01, 2018
End Date	May 19, 2031
Duration	4,886 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`56989`

Grant Description

China Eximbank provides $30 million loan for an unspecified defense project According to Zambia's Ministry of Finance, between January and June of 2018, China Eximbank and the Government of Zambia signed a $30 million loan agreement for an unspecified defense project. No further details are available.

📋 Staff Comments

This project is also known as the Defense Project.
According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Zambia was 3.4733-years in 2018. AidData estimates the grace period of the China Eximbank loan that supported the defense project by using this figure. See https://www.dropbox.com/scl/fi/uyz6w7q31x2o8i6rna7ug/DRS-May-2024-Extraction-Official-Chinese-Loan-Commitments-to-Zambia.xlsx?rlkey=n0a6270w91pdmmfyaoqva419r&dl=0 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Zambia was 12.8605-years in 2018. AidData estimates the maturity of the China Eximbank loan that supported the defense project by using this figure. See https://www.dropbox.com/scl/fi/uyz6w7q31x2o8i6rna7ug/DRS-May-2024-Extraction-Official-Chinese-Loan-Commitments-to-Zambia.xlsx?rlkey=n0a6270w91pdmmfyaoqva419r&dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Zambia was 5.728% in 2018. AidData estimates the interest rate of the China Eximbank loan that supported the defense project by using this figure. See https://www.dropbox.com/scl/fi/uyz6w7q31x2o8i6rna7ug/DRS-May-2024-Extraction-Official-Chinese-Loan-Commitments-to-Zambia.xlsx?rlkey=n0a6270w91pdmmfyaoqva419r&dl=0

📚 Sources & References

2018 Mid-Year Economic Review
SAIS-CARI Loans China
江西省2019年参与“一带一路”建设重点项目清单
Chinese Loans to Africa Database
Zambia’s Chinese Debt in the Pandemic Era - Briefing Paper, 2018 Mid-Year Economic Review 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.