Active Mixed AidData Chinese Aid

ICBC provides $104 million buyer’s credit for Mfuwe International Airport Construction Project

$104.01M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Government of Zambia
Country	Zambia
Start Date	Jan 01, 2017
End Date	Sep 05, 2026
Duration	3,534 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92316`

Grant Description

ICBC provides $104 million buyer’s credit for Mfuwe International Airport Construction Project In 2017, the Industrial and Commercial Bank of China and the Government of Zambia signed a $104,009,785.90 buyer’s credit agreement for the Mfuwe International Airport Construction Project.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, it is known that the borrower was expected to use the proceeds of the loan to partially finance a $120 million commercial contract between Zambia Airports Corporation Ltd (ZACL) and China National Complete Engineering Corporation, which was signed in November 2015. The purpose of the project is to construct Mfuwe International Airport in Eastern Province.

More specifically, the project involves the upgrade of an international airport with the construction of a 600 capacity passenger terminal building.

It includes the construction of a new air traffic control tower, new rescue fire station, hangars, administrative space, a hotel, a shopping mall, parking and related infrastructure, and the installation of safety and security systems. As of February 2022, AidData had not identified any evidence of project implementation.

📋 Staff Comments

The Chinese project title is 赞比亚MFUWE机场扩建项目.
The ICBC loan that was issued for this project is not included in the the database of Chinese loan commitments that SAIS-CARI released in July 2020.
According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Zambia was 1.6034-years in 2017. AidData estimates the grace period of the ICBC loan that supported the Mfuwe International Airport Construction Project by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Zambia was 5.1501-years in 2017. AidData estimates the maturity of the ICBC loan that supported the Mfuwe International Airport Construction Project by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0 5. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Zambia was 3.6301% in 2017. AidData estimates the interest rate of the ICBC loan that supported the Mfuwe International Airport Construction Project by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0

📚 Sources & References

Corpus Legal Practitioners Zambia
ZACL – Mfuwe International Airport Upgrade – Zambia
业绩展示 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 Zambia

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