Completed Development AidData Chinese Aid

ICBC provides $135.8 million loan for Hospital Construction and Associated Works Project

$135.81M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Government of Zambia
Country	Zambia
Start Date	Dec 21, 2015
End Date	Aug 11, 2028
Duration	4,617 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`53041`

Grant Description

ICBC provides $135.8 million loan for Hospital Construction and Associated Works Project On December 21, 2015, the Government of Zambia and ICBC signed a $135,806,251.37 commercial loan agreement for the Hospital Construction and Associated Works Project.

The proceeds of the loan were to be used by the borrower to finance 85% of the cost of a $159 million commercial contract between the Government of Zambia and China National Complete Engineering Corporation (CNCEC), which was signed in November 2014 and amended in February 2015. The Government of Zambia agreed to cover the remaining 15% of the commercial contract cost.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, Sinosure apparently provided a credit insurance policy.

The project involved the construction of Lusaka Specialised Hospital, the Chinsali General Hospital, and the Petuake General Hospital.

The Chinsali General Hospital Construction Project involved the construction of a provincial general hospital in the town of Chinsali with 102 doctors’ residences, 4 dormitories for nurses, a nurse training school; and the procurement and installation of medical equipment, furnitures, appliances, teaching facilities and office equipment.

Petuake General Hospital is located in the town of Petauke.

Lusaka Specialised Hospital is located in Chongwe district near Kenneth Kaunda International Airport (on Kenneth Kaunda International Airport Road). On August 23, 2016, Zambia’s Ministry of Construction handed over the project site to CNCEC for preparatory work.

Then, on October 26, 2016, Zambia’s Ministry of Finance made a 15% advance payment (worth approximately $24 million dollars) to CNCEC. Construction began in June 2017.

However, a formal groundbreaking ceremony (for the construction of the Lusaka Specialised Hospital) did not take place until October 17, 2017. By May 2018, the project had achieved a 40% completion rate. Then, on October 10, 2019, a medical equipment delivery ceremony was held. The project was originally scheduled to reach completion by May 2020.

As of May 19, 2020, the Chinsali General Hospital and Petuake General Hospital were already in use; however, the specialized hospital in Lusaka was still being constructed at that time. The Lusaka Specialised Hospital was put into use on June 5, 2021.

📋 Staff Comments

The Chinese project title is 赞比亚钦萨利医院项目 or 钦萨利医院 or 钦萨利、佩塔乌凯综合医院及卢萨卡专科医院项目 or 赞比亚医院项目 or 赞比亚医院及配套工程项目.
The Government of Zambia also signed a $24 million loan agreement in 2016 with Standard Chartered Bank (China) Limited for the same project; however, it is unclear how the proceeds of this loan were used. Some Chinese sources characterize the loan to be a commercial loan.
SAIS-CARI refers to the ICBC loan as a loan that supported the ‘Chinsali General Hospital Project’. However, multiple official and unofficial sources confirm that the loan supported the construction of Lusaka Specialised Hospital, the Chinsali General Hospital, and the Petuake General Hospital.
There is some circumstantial evidence (see http://en.cmcec.com/xwzx_6391/mtjj/201910/t20191017_224902.html) that suggests China Construction Bank (CCB) may have also supported this project. This issue warrants further investigation.
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 3.89-years in 2016. AidData estimates the grace period of the ICBC loan that supported the Hospital Construction and Associated Works 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 6. 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 16.5015-years in 2016. AidData estimates the maturity of the ICBC loan that supported the Hospital Construction and Associated Works 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 7. 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 4.2602% in 2016. AidData estimates the interest rate of the ICBC loan that supported the Hospital Construction and Associated Works 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

Mid-Year Economic Review
NATIONAL ASSEMBLY OF ZAMBIA REPORT OF THE COMMITTEE ON GOVERNMENT ASSURANCES FOR THE SECOND SESSION OF THE TWELFTH NATIONAL ASSEMBLY APPOINTED ON THURSDAY, 21ST SEPTEMBER, 2017
HE WHO PAYS THE PIPER: ZAMBIA’S GROWING CHINA DEBT CRISIS
中国成套承建的赞比亚医院项目 “火线”移交赞比亚卫生部使用
赞比亚钦萨利医院及配套项目贷款协议正式签署
赞比亚钦萨利医院及配套项目融资谈判顺利进行
Zambia Annual Economic Report 2016
赞比亚钦萨利医院及配套项目贷款协议正式签署
赞比亚医院及配套工程项目正式生效
THE PROJECT OF HOSPITAL AND ASSOCIATED WORKS IN ZAMBIA COMES INTO EFFECT
ANNUAL ECONOMIC REPORT 2016
Chinsali Hospital in Zambia nears completion
Zambian Government Officials Inspected the Site of the Chinsali General Hospital Project
赞比亚政府官员视察钦萨利综合医院项目工地现场
Tuesday, 14th March, 2017 The House met at 1430 hours
CMEC Makes Painstaking Efforts to Benefit the Africans
Chinsali General Hospital map
中国对外承包工程国别（地区）市场报告2019-2020.pdf
Petauke General Hospital map
赞比亚总统伦古参加由我司承建的卢萨卡专科医院项目开工典礼
Republic of Zambia Ministry of Health STATEMENT ON COVID-19 IN ZAMBIA LUSAKA (Saturday 5th June, 2021)
President Edgar Lungu Commissions the construction of a Specialised Hospital in Chongwe
Construction of the Lusaka specialised hospital have been completed-Health Minister, the construction site of the New Lusaka Specialised Hospital on Kenneth Kaunda International Airport Road in Lusaka
Delivery Ceremony of Medical Equipment for Zambia hospital and auxiliary projects
Delivery Ceremony of Medical Equipment for Zambia hospital and auxiliary projects
Our services to Her Majesty's Government 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.