Chinese Government provides NAD 60 million interest-free loan for Social Housing Project (Linked to Record ID#62071)

Chinese Government provides NAD 60 million interest-free loan for Social Housing Project On March 29, 2018, during Namibian President Hage Geingob's state visit to China, the two heads of state signed letters of exchange in which the Chinese Government agreed to finance a social housing project in Gobabis and Grootfontein.

According to the Namibian Government's 2019/2020 Annual Report, the Gobabis and Grootfontein Social Housing Project was to be financed with an NAD 72 million grant and an NAD 60 million interest-free loan. The total expected project cost was to NAD 132 million and the investment was to be split across the two towns.

However, in August 2018, a local media outlet (The Namibian) reported that construction had not commenced because of 'unfinished technical details.' In July 2018, Chinese Ambassador Zhang told the same media outlet that the Government of Namibia had signed an agreement with the Chinese Government in 2017 to borrow the NAD 120 million for the project.

Then, in January 2020, the Chinese Government and Namibian Government made a course correction.

The parities agreed to fully finance the Gobabis and Grootfontein Social Housing Project with an RMB 66 million grant from China's Ministry of Commerce (MOFCOM).

The purpose of the project is to alleviate desperate housing shortages and involves building 200 affordable housing units in Gobabis and 200 affordable housing units in Grootfontein (with each house costing close to NAD 300,000). The RMB 66 million grant commitment is captured via Record ID#62071. The cancelled NAD 60 million interest-free loan is captured via Record ID#62070.