Active Mixed AidData Chinese Aid

ICBC provides $22.16 million loan for Chipata-Lundazi-Chama 132kV Transmission Project (Linked to Record ID#57573)

$22.16M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Zambia Electricity Supply Corp. (ZESCO)
Country	Zambia
Start Date	Aug 10, 2017
End Date	Aug 09, 2027
Duration	3,651 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`98551`

Grant Description

ICBC provides $22.16 million loan for Chipata-Lundazi-Chama 132kV Transmission Project On August 10, 2017, the Industrial and Commercial Bank of China (ICBC) signed a $22,160,000 term loan facility agreement with ZESCO Limited — a state-owned power company in Zambia — for the Chipata-Lundazi-Chama 132kV Transmission Project.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

The project scope involves the engineering, design, supply, installation, construction, testing, and commissioning of Chipata-Lundazi-Chama 132kV transmission project, which will support the Chipata West 330/132kV substation, Mwasemphangwe 132-66/33kV substation, Lundazi Main 132-66/33kV substation, Egichikeni 123-66/33kV substation, Chama Main 131-66/33kV substation, and Tembew, Emusa, Chasefu, Chanje, Mwimba, and Chikwa 33/0.4kV substations.

In October 2022, Zambia’s Minister of Energy reported to Parliament that the substations in Lundazi, Chama, Mwasemphangwe and Egichikeni were under construction.

The Minister of Energy also reported that the project’s geo-technical works and topographical surveys for the substations were complete.

At that time, the Minister of Energy expected that civil works for all four substations would commence in mid-November 2022 and the project was a whole would be completed by the end of 2024.

📋 Staff Comments

This loan is not included in the SAIS-CARI database of Chinese loan commitments that was released in 2020 and re-released in 2021.
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 1.6874-years in 2017. AidData estimates the grace period of the ICBC loan for the Chipata-Lundazi-Chama 132kV Transmission Project by using this figure. See https://www.dropbox.com/scl/fi/iymnqwd205mvs5h8crtv8/DRS-May-2024-Extraction-Private-Chinese-Loan-Commitments-to-Zambia.xlsx?rlkey=bi71wlqbrbnfienx75a7bq1g2&dl=0.
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 14.1282-years in 2017. AidData estimates the maturity of the ICBC loan for the Chipata-Lundazi-Chama 132kV Transmission Project by using this figure. See https://www.dropbox.com/scl/fi/iymnqwd205mvs5h8crtv8/DRS-May-2024-Extraction-Private-Chinese-Loan-Commitments-to-Zambia.xlsx?rlkey=bi71wlqbrbnfienx75a7bq1g2&dl=0.
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 4.7455% in 2017. AidData estimates the interest rate of the ICBC loan for the Chipata-Lundazi-Chama 132kV Transmission Project by using this figure. See https://www.dropbox.com/scl/fi/iymnqwd205mvs5h8crtv8/DRS-May-2024-Extraction-Private-Chinese-Loan-Commitments-to-Zambia.xlsx?rlkey=bi71wlqbrbnfienx75a7bq1g2&dl=0

📚 Sources & References

Wednesday, 26th October, 2022 National Assembly Notes
Tuesday, 22nd March, 2022 National Assembly Notes
SI No.88 of 2018 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

Zambia Electricity Supply Corp. (ZESCO)

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