Active Development AidData Chinese Aid

Chinese Government provides $22 million interest-free loan to Zambia for TAZARA Operations and Maintenance Project

¥22M RMB

Funder	China Ministry of Commerce
Recipient Organization	Government of Zambia\|Tanzania-Zambia Railway Authority (TAZARA)
Country	Zambia
Start Date	Jan 01, 2015
End Date	Mar 19, 2029
Duration	5,191 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`73171`

Grant Description

Chinese Government provides $22 million interest-free loan to Zambia for TAZARA Operations and Maintenance Project In 1967, the Chinese Government provided an RMB 494 million interest-free loan 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.

In 2015, the Chinese Government signed a $22 million interest-free loan to support the ongoing operations and maintenance of TAZARA.

📋 Staff Comments

1. Since the borrowing terms of the loan are unavailable, AidData has set the maturity to 20-years by default and the 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 of MOFCOM 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

TAZARA Railway
REPORT OF THE COMMITTEE ON GOVERNMENT ASSURANCES FOR THE FIRST SESSION OF THE TENTH NATIONAL ASSEMBLY APPOINTED ON 8TH NOVEMBER, 2006
Chinese Loans to Africa Database 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.