ICBC provides $29.6 million loan for Mpika Power Supply Improvement Project (Linked to Record ID#57492)

📋 Staff Comments

1. This project is also known as the Improvement of Power in Mpika District Project and the Mpika Power Supply, 330-66 KV Substation Project. The Chinese project title is 赞比亚Mpika地区电力改善项目.
2. The SAIS-CARI Chinese Loans to Africa database released in July 2020 identifies this loan as having an 18-year maturity length. However, AidData relies on ZESCO sources (source ID#67341 and #88869), which identify a 15-year maturity.
3. 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.
4. Even though Zambian official sources (ID#67341, #88869) portrayed this is as just an ordinary ICBC loan, TBEA (source ID#117086) confirmed that ICBC provided a seller's credit.
5. The monetary value of the EPC contract with TBEA was $38 million.
6. Official sources differ on the precise face value and commitment date of the loan. The Government of Zambia's Loans and Guarantees (Authorisation) (Exemption) Notice of 2017 identifies a $19.6 million ICBC loan that was issued on July 13, 2017 for the Mpika Power Supply Improvement Project (https://www.zambialaws.com/Zambia2017Pdfsi/SI%2049%20of%202017.pdf). ZESCO's 2019 Integrated Report identifies a $29.6 million ICBC loan that was issued on July 13, 2016 for the Mpika Power Supply Improvement Project (https://www.dropbox.com/s/9log3odahb3y8fa/ZESCOIntegratedReport2019-20210818131559.pdf?dl=0). This discrepancy warrants further investigation.
7. This project is part of phase II of a larger project called the Zambia-Tanzania-Kenya (ZTK) Transmission Interconnector Project, which will seeks to connect the power grids of all three countries (as captured via Project ID#57492).

📚 Sources & References

• 2017 Integrated Report
• ZTK Transmission Interconnector (Zambia section)
• Power Transmission Interconnector Kabwe (Zambia) to Iringa (Tanzania) Project Information Memorandum
• Zambia-Tanzania Interconnector (P166099) Project Information Document/Integrated Safeguards Data Sheet (PID/ISDS)
• Small entrepreneurs demand reliable power supply
• PRESS STATEMENT: SHUTDOWN OF THE 330kV PENSULO-KASAMA TRANSMISSION LINE TO FACILITATE COMMISSIONING WORKS AT THE NEW MPIKA 330/132-66KV SUBSTATION
• 赞比亚Mpika地区电力改善项目通信电源招标公告
• 赞比亚MPIKA地区电力改善项目——330KV变电站工程 圆满收工
• 赞比亚MPIKA地区电力改善项目——330KV变电站工程 圆满收工
• ZESCO LIMITED REPORT AND FINANCIAL STATEMENTS
• Zambia’s Chinese Debt in the Pandemic Era - Briefing Paper, 2019 Integrated Report
• CHALLENGES AND POSSI BLE SOLUTIONS IN ZAMBIA ’S ELECTRICITY SUPPLY INDUSTRY
• Statutory Instrument No 49 of 2017 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.