Completed Development AidData Chinese Aid

China Eximbank provides RMB 27.7 million loan for Francistown Housing Project (120 Units)

¥27.79M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Botswana
Country	Botswana
Start Date	Jan 01, 2003
End Date	Feb 20, 2028
Duration	9,181 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`57796`

Grant Description

China Eximbank provides RMB 27.7 million loan for Francistown Housing Project (120 Units) In 2003, China Eximbank and the Government of Botswana signed a RMB 27,792,763 loan agreement for the Francistown Housing Project (120 Units).

📋 Loan / Grant Terms

💰 Loan Amountreportedly carried the following terms: a 13 year maturity

📅 Maturity13 years

⏳ Grace Period6 years

💹 Interest Rate4%

Its final maturity date was September 21, 2016. This loan agreement was ratified by Botswana’s Parliament in 2004.

The Government of Botswana used the proceeds from the loan to on-lend to the Botswana Housing Corporation (BHC) at a significantly higher interest rate (approximately 8.5%).

The BHC, in turn, used the proceeds from its subsidiary loan agreement with the Government of Botswana to construct 120 housing units (99 low-income and 21 medium-income housing units) in the city of Francistown.

Complant Botswana (Pty) Ltd., a subsidiary of China National Overseas Engineering Corporation, was the contractor responsible for implementation. This project was completed in 2005.

📋 Staff Comments

This project is also known as the Francistown BHC Houses - 120 Houses Project. Some sources indicate that this loan supported the construction of 85 houses rather than 120 houses. In the database of Chinese loan commitments that it released in July 2020, SAIS-CARI records the maturity length of this loan as 14-years. AidData relies on the maturity length (13-years) that is recorded by Botswana’s Ministry of Finance and Economic Development. SAIS-CARI records the face value of this loan as $2 million. AidData relies upon the face value (27,792,763, or ~$4 million) of the loan that is recorded by Botswana’s Ministry of Finance and Economic Development.As per coding guidelines, the more conservative estimate 8.4% interest is taken. Two government sources conflict - the Government Ratification Act and the Botswana Housing Corporation Report - as to the loan total. The first says P15,160,185 split between Francistown and Palapye Housing Projects, while the latter says P15,542,299. Since the Government source is actually referring to a split source of funding, the BHC source will be used as the transaction amount.

📚 Sources & References

Presentation to the African Union for Housing Finance (AUHF) Conference
Botswana Housing Corporation (Francistown Housing Project Loan) (Ratification) Act, 2004
BHC Annual Report 2013-14a
Botswana: Chinese Projects Create Over 2000 Jobs
Annual Statement of Accounts For the Financial Year Ended 31 March 2016
Government of Botswana External Debt Tables 2010
Presentation to the African Union for Housing Finance (AUHF) Conference 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 Botswana

Interested in applying for this grant?

Complete our application form to express your interest and we'll guide you through the process.

Apply for This Grant