Active Development AidData Chinese Aid

Chinese Government provides $3 million interest-free loan — via ETCA — for unspecified development projects

$30M USD

Funder	China Ministry of Commerce
Recipient Organization	Government of Morocco
Country	Morocco
Start Date	Mar 24, 2000
End Date	Jun 10, 2028
Duration	10,305 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`1788`

Grant Description

Chinese Government provides $3 million interest-free loan — via ETCA — for unspecified development projects On March 24, 2000, the Chinese Government and the Government of Morocco signed an Economic and Technical Cooperation Agreement (ETCA), which committed a $3 million (MAD 30 million) interest-free loan to an unspecified set of economic development projects in Morocco.

The Moroccan Secretary of State [to the Minister of State for Foreign Affairs and Cooperation], Mrs.

Aicha Benlarbi, and the Chinese Deputy Minister of Foreign Trade and Cooperation signed the agreement in Rabat, Morocco.

The agreement was also signed in the presence of Minister of State for Foreign Affairs and Cooperation, Mohamed Benaissa, and Chinese State Councillor, Luo Gan. The borrower is responsible for repaying the loan over a period of 10-years.

However, it is unclear if this 10-year period refers to the maturity length or the repayment period (after the expiration of a grace period).

📋 Staff Comments

A duplicate project (#55982) was deactivated and the sources were added to this project. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20-years by default and 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 period of 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

China grants Morocco 30m dirhams interest-free loan.
China grants Morocco 3m dollar loan., http://global.factiva.com/aa/?ref=bbcmee0020010804dw3q001jl&pp=1&fcpil=en&napc=S&sa_from=, http://global.factiva.com/aa/?ref=bbcmnf0020010804dw3p00hdf&pp=1&fcpil=en&napc=S&sa_from=
Chinese Loans to Africa Database
Le Matin - Une coopération modèle entretenue dans le respect des orientations politiques de l'autre
Chronologie des accords de coopération signés entre le Maroc et la Chine 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.