Completed Development AidData Chinese Aid

China Eximbank provides RMB 670 million government concessional loan for Phase 2 of Equipment Supply to Local Governments Project

¥670K RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Uganda Ministry of Finance
Country	Uganda
Start Date	Oct 20, 2011
End Date	Jun 16, 2029
Duration	6,449 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`60323`

Grant Description

China Eximbank provides RMB 670 million government concessional loan for Phase 2 of Equipment Supply to Local Governments Project On September 9, 2011, the Chinese Government and the Government of Uganda signed a preferential loan framework agreement for Phase 2 of the Equipment Supply to Local Governments Project.

Then, on October 20, 2011, China Eximbank and the Government of Uganda signed an RMB 670,000,000 ($104,949,874.69) government concessional loan (GCL) agreement [GCL NO. (2011) 8 TOTAL NO. (359) SERIES NO.: 1420303032011110198] for Phase 2 of the Equipment Supply to Local Governments Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

The proceeds of the GCL were to be used by the borrower to finance a $100,000,000 commercial contract [F.A.W/UG/MOF/10F] between the Government of Uganda’s Ministry of Finance, Planning, and Economic Development and China FAW Group Import & Export Co, Ltd., which was signed on May 14, 2010.

According to the Government of Uganda’s Aid Management Platform (AMP), this loan achieved a 95.3% disbursement rate, with China Eximbank making 5 loan disbursements (worth $100,119,280.46) between 2012 and 2013: a $50,116,650.84 disbursement on January 13, 2012, a $27,417,589.61 disbursement on June 25, 2012, a $5,896,443.57 disbursement on December 18, 2012, a $6,688,214.65 disbursement on July 26, 2013, and a $10,000,381.79 disbursement on October 11, 2013.

According to the Uganda Ministry of Finance, Planning, and Economic Development's Report on Public Debt, Grants, Guarantees and Other Financial Liabilities for Financial Year 2021/2022, as of December 31, 2021, total loan disbursements amounted to $99,094,611.37 and the loan’s amount outstanding (including arrears) was $66,063,075.41.

The purpose of this project was to procure 1400 pieces of road equipment -- including 159 graders, 257 tipper trucks, 12 wheel loaders, six dozers, seven excavators and two loaders--for 121 districts and 22 municipalities around the country. Project implementation officially commenced on June 18, 2012 and concluded on or around May 25, 2013.

The originally expected project completion date was December 31, 2013. As early as October 2013, complaints arose from local governments about the quality and ineffectiveness of the graders.

📋 Staff Comments

This project is also known as the Uganda Equipments Supply to Local Government Project (Phase 2), the Equipment Supply to Local Governments 2 Project, and the Road Construction Equipment Project. The Chinese project title is 坎帕拉市政工程设备项目 or 1400台套的市政工程设备.
One source refers to the face value of the China Eximbank loan as RMB 631,034,482. AidData relies on the face value of the loan (RMB 240,000,000) as recorded in the actual GCL agreement [CHINA EXIMBANK GCL N0. (2007) 23 TOTAL NO. 194].
The May 14, 2010 commercial contract is also known as the Contract for Supply Assorted Road, Sanitary and Fire Fighting Equipment for Municipalities, Towns and Districts of Uganda.
The Government of Uganda’s agreement code for the GCL agreement is L-0608. The system identification number in the Government of Uganda’s Aid Management Platform (AMP) is 87299311772.
The China Eximbank loan (GCL) agreement can be accessed in its entirety via https://www.dropbox.com/s/7comfnarw4z3924/Equipment%20Supply%20to%20Local%20Governments%20Project%20%28Phase%202%29.pdf?dl=0.”

📚 Sources & References

A Critical Analysis of China’s Infrastructure Assistance To Uganda
Aid Management Platform - Road Equipment District Units - MOLG
China Exim Bank to fund more projects in Uganda, e-government loan agreement, http://africanreview.com/construction-a-mining/roads/ugandan-government-increases-road-network-funding, http://global.factiva.com/aa/?ref=CERPDB0020120621e86k0000f&pp=1&fcpil=en&napc=S&sa_from=, http://global.factiva.com/aa/?ref=WDAN000020101103e6b200008&pp=1&fcpil=en&napc=S&sa_from=, http://global.factiva.com/aa/?ref=XNEWS00020120619e86j009ex&pp=1&fcpil=en&napc=S&sa_from=
Infrastructure: Uganda’s great Chinese expectations
Loan agreement
MARCH 2015 VALUE FOR MONEY AUDIT REPORT
MINISTRY OF FINANCE
PLANNING AND ECONOMIC DEVELOPMENT, national transmission project
President Museveni, ambassador Zhao hold bilateral meeting
Qingqi Company exported 42 fire trucks to Uganda
REPORT ON PUBLIC DEBT (DOMESTIC AND EXTERNAL LOANS)
GUARANTEES AND OTHER FINANCIAL LIABILITIES AND GRANTS FOR FINANCIAL YEAR 2015/16
REPORT ON PUBLIC DEBT
GUARANTEES
OTHER FINANCIAL LIABILITIES AND GRANTS FOR FINANCIAL YEAR 2020/21
REPORT ON PUBLIC DEBT
GUARANTEES,OTHER FINANCIAL LIABILITIES AND GRANTSFOR FINANCIAL YEAR 2017/18
REPORT ON THE ALLEGED IRREGULAR PROCUREMENT OF TETRA COMMUNICATION WALKIE TALKIES SYSTEM FOR CHOGM
ROAD EQUIPMENT DISTRICT UNITS- MOLG
中乌签署市政工程设备采购项目二期优惠贷款政府间框架协议
中国进出口银行代表团来乌考察优惠贷款项目
乌干达总统启用中国产市政工程设备
乌干达总统启用中国产市政工程设备
驻乌干达大使赵亚力出席乌市政工程设备项目启动仪式 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

Uganda Ministry of Finance

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