Completed Mixed AidData Chinese Aid

ICBC provides $284.7 million loan for Pensulo-Msoro-Chipata West 330 KV and Pensulo-Kasama 330 kV Transmission Lines Project (Linked to Record ID#57556)

$284.74M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Zambia Electricity Supply Corp. (ZESCO)
Country	Zambia
Start Date	May 30, 2011
End Date	May 09, 2030
Duration	6,919 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`57492`

Grant Description

ICBC provides $284.7 million loan for Pensulo-Msoro-Chipata West 330 KV and Pensulo-Kasama 330 kV Transmission Lines Project On May 30, 2011, Zambia Electricity Supply Corporation (ZESCO) Limited signed a $284,739,000 buyer’s credit facility with Industrial and Commercial Bank of China (ICBC) for the Pensulo-Msoro-Chipata West 330 kV and Pensulo-Kasama 330 kV Transmission Lines Project.

📋 Loan / Grant Terms

💰 Loan Amountcarries the following borrowing terms: a 16

📅 Maturity16.5 years

⏳ Grace Period6.5 years

The borrower was expected to use the proceeds of the loan to partially finance a $330 million commercial contract between the ZESCO Limited and Tebian Electric Apparatus (TBEA), which was signed in October 2010.

The loan’s amount outstanding was $272,000,000 as of December 31, 2015, $284,700,000 as of December 31, 2016, $284,700,000 as of December 31, 2017, $284,700,000 as of December 31, 2018, $227,790,000 as of December 31, 2019, and $213,550,00 as of December 31, 2020.

The project involved the construction of 670 km of power transmission lines — namely, the Pensulo-Msoro-Chipata West 330 KV electricity transmission line and the Pensulo-Kasama 330 kV electricity transmission line.

It also involved the construction three new 330kv sub-stations in Kasama, Msoro and Chipata west as well as upgrading existing sub-stations in the three areas. The purpose of the project was to deliver electricity to the Northern and Eastern provinces near the Tanzania border. Tebian Electric Apparatus (TBEA) was the contractor responsible for implementation.

A groundbreaking ceremony took place on July 22, 2012 and the project was completed and officially commissioned on December 14, 2015.

This project is part of larger project called the Zambia-Tanzania-Kenya (ZTK) Transmission Interconnector, which sought link the power grids of all three countries.

📋 Staff Comments

The Chinese project title is Pensulo-Kasama以及Pensulo-Msoro-Chipata West两条330kV的输变电成套工程项目 or 特变电工赞比亚输变电项目 or 新疆特变电工输变电项目 or 从中部省Pensulo至北方省Kasama 以及Pensulo至东方省Chipata的330千伏输变电线路 or 赞比亚项目Pensulo-Kasama 330kV线路(北部工程). 2a. In the database of Chinese loan commitments that it released in July 2020, SAIS-CARI records this loan as having a maturity of 15-years and a grace period of 5-years. AidData records the maturity length of the loan as 16.5-years and the grace period as 6.5-years because the audited 2017 financial statements of ZESCO Limited (the borrower) specify that the maturity date of the loan is January 31, 2028 and that repayments are not scheduled to begin until January 31, 2018. 2b. The Government of Zambia recorded a different grace period (1.666-years) in its voluntary reporting to the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/scl/fi/iymnqwd205mvs5h8crtv8/DRS-May-2024-Extraction-Private-Chinese-Loan-Commitments-to-Zambia.xlsx?rlkey=bi71wlqbrbnfienx75a7bq1g2&dl=0. This issue warrants further investigation.
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.
One official source (https://www.zambialaws.com/Zambia2012Pdfsi/SI-2012-76.pdf) suggests that the loan commitment date may have been in 2012 rather than 2011. This issue warrants further investigation.

📚 Sources & References

PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 70.1 MILLION (US$105 MILLION EQUIVALENT) TO THE REPUBLIC OF ZAMBIA FOR THE LUSAKA TRANSMISSION AND DISTRIBUTION REHABILITATION PROJECT
ICBC Devotes to Supporting China-Africa Financial Cooperation, 2012 Government of Zambia Bond Prospectus
REMARKS AT THE GROUNDBREAKING CEREMONY OF 330KV PENSULO-KASAMA AND PENSULO-MSORO-CHIPATA TRANSMISSION LINE PROJECTS BY H.E. ZHOU YUXIAO
CHINESE AMBASSDOR TO ZAMBIA
Power Transmission Interconnector Kabwe (Zambia) to Iringa (Tanzania) Project Information Memorandum
ZTK Transmission Interconnector (Zambia section)
President Lungu to commission a Pensulo-Kasama Power Transmission line-ZESCO
Zesco to stop importing power
新疆特变电工输变电项目举行破土仪式
Northern
Luapula
Muchinga provinces set for boom
THE REPUBLIC OF ZAMBIA U.S.$1,250,000,000 8.970 per cent. Amortising Notes due 2027, 3 rd Meeting of the OECD Network on the Governance of State-Owned Enterprises in Southern Africa Forging Ahead with Reforms SESSION 4: SOEs IN THE INFRASTRUCTURE SECTOR Fostering partnerships and enhanced implementation capacity
特变电工与赞比亚电力公司签3.3亿美元合同
特变电工与赞比亚项目签约仪式
ZESCO LIMITED REPORT AND FINANCIAL STATEMENTS
ZESCO Integrated Report 2017
ZESCO 2016 Integrated Report
REPUBLIC OF ZAMBIA REPORT OF THE COMMITTEE ON PARASTATAL BODIES ON THE MANAGEMENT AND OPERATIONS OF THE INDUSTRIAL DEVELOPMENT CORPORATION
Chinese Loans to Africa Database
特变电工获赞比亚国电3.3亿美元合同
个人商城 >企业商城
End June 202021 Public Debt Summary
End June 2022 Public Debt Summary
ZESCO Integrated Report 2020
ZESCO Integrated Report 2018
ZESCO Integrated Report 2015
Statutory Issue No 76 of 2012 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

Zambia Electricity Supply Corp. (ZESCO)

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