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Chinese Government provides RMB 270 million interest-free loan for TAZARA 15th Protocol (Linked to Record ID#30287)
| Funder | China Ministry of Commerce |
|---|---|
| Recipient Organization | Government of Tanzania |Government of Zambia |
| Country | Africa, regional |
| Start Date | Mar 26, 2012 |
| End Date | Oct 23, 2026 |
| Duration | 5,324 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 59574 |
Grant Description
Chinese Government provides RMB 270 million interest-free loan for TAZARA 15th Protocol On March 26, 2012, the Chinese Government signed the 15th Protocol of Economic and Technical Cooperation Agreement (ETCA) with the Governments of Zambia and Tanzania, and provided an RMB 270 million ($42.6 million USD) interest-free loan to support the ongoing operations and maintenance of TAZARA.
The proceeds from this loan were used to support the procurement and supply of 18 passenger coaches and accompanying consumables, four new main line locomotives, two shunting locomotives, two rescue cranes and various lifting equipment.
This loan is part of the 15th Protocol of Economic and Technical Cooperation Agreement (ETCA) between China, Tanzania, and Zambia which also provided a $23.5 million USD grant (Record ID#30287).
On December 2, 2015, the handover ceremony of 18 passenger cars and 4 mainline locomotives was held at Tanzania Dashi Railway Station. The total contribution of the 15th protocol is $66.2 million USD. The money provided went toward different projects to facilitate the rehabilitation.
In November of 2012, $42 million went toward 12 separate projects including: updating 42 coach cars, four new locomotives, two diesel shunting locomotives, 30,000 wooden sleepers, track maintenance vehicles, and staff training.
In 1967, the Chinese Government provided an RMB 494 million interest-free loan to the Government of Zambia for the construction of the 1860 km Tanzania–Zambia Railway (TAZARA), stretching from Dar‑es‑Salaam to Kapiri Mposhi.
Since then, the Chinese Government has provided a series of grants and loans to support TAZARA by providing spare parts, fuel, technical assistance, passenger coaches, and locomotives.
Staff Comments
The recipient of the project is coded as Africa, Regional because the financing is directed towards both the Government of Zambia and the Government of Tanzania, with no clear breakdown. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20-years by default and grace period to 10-years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20-years, with a drawdown period of 5-years, grace period of 5-years, and repayment over 10-years. AidData treats the drawdown period as providing 5-years of additional grace.
Sources & References
- Negotiating the technological capacity in Chinese engagements: Is the Tanzanian government in the driving seat?
- Chinese Vice President hands over new equipment to Tanzania-Zambia Railway Authority
- 中国援助的坦赞铁路机车和客车隆重交接
- Leveraging Chinese FDI For Diversified Growth In Zambia
- TAZARA Railway
- REPORT OF THE COMMITTEE ON GOVERNMENT ASSURANCES FOR THE FIRST SESSION OF THE TENTH NATIONAL ASSEMBLY APPOINTED ON 8TH NOVEMBER, 2006
- TAZARA ORDER 18 NEW COACHES FOR $9.52M
- Chinese Vice President hands over new equipment to Tanzania-Zambia Railway Authority
- Tazara's new CEO pledges to revive Chinese-built railway line
- BRACING FOR INCREASED HAULAGE WITH BOOST IN THE FLEET OF LOCOMOTIVES
- COACHES
- Bridges of prosperity
- Vice President hands over new equipment to Tanzania-Zambia Railway Authority
- Management of the International Development Aid System and the Creation of Political Space for China: The Case of Tanzania
- Chinese Loans to Africa Database, hinese Vice President hands over new equipment to Tanzania-Zambia Railway Authority
- TAZARA GETS NEW LOCOMOTIVES
- TAZARA takes delivery of locos and coaches 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 Tanzania |Government of Zambia
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