Bank of China (Zambia) provides $30 million loan for unspecified defense project in 2019

📋 Staff Comments

1. This project is also known as the Defence Project.
2. Other defense loans contracted by the Government of Zambia in 2019 include a China Eximbank loan for the Chalala Barracks Project (captured via Project ID#88394).
3. 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 2.5833-years in 2019. AidData estimates the grace period of the Bank of China loan that supported the unspecified defense project by using this figure. See https://www.dropbox.com/scl/fi/h1z97tpe8cee8adol7ml8/Private-Chinese-Loans-to-Zambia-DRS-November-2023-Extraction.xlsx?rlkey=vxfb0rhd1tcm1vvt4nlfbpu57&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 6.0833-years in 2019. AidData estimates the maturity of the Bank of China loan that supported the unspecified defense project by using this figure. See https://www.dropbox.com/scl/fi/h1z97tpe8cee8adol7ml8/Private-Chinese-Loans-to-Zambia-DRS-November-2023-Extraction.xlsx?rlkey=vxfb0rhd1tcm1vvt4nlfbpu57&dl=05. 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 5.5166% in 2019. AidData estimates the interest rate of the Bank of China loan that supported the unspecified defense project by using this figure. See https://www.dropbox.com/scl/fi/h1z97tpe8cee8adol7ml8/Private-Chinese-Loans-to-Zambia-DRS-November-2023-Extraction.xlsx?rlkey=vxfb0rhd1tcm1vvt4nlfbpu57&dl=0

📚 Sources & References

• SAIS-CARI Loans China
• ANNUAL ECONOMIC REPORT 2019
• MID YEAR ECONOMIC REPORT
• ANNUAL ECONOMIC REPORT 2019
• Zambia’s Chinese Debt in the Pandemic Era - Briefing Paper
• China Loans to Africa
• DRS Official Commitments from China Through 2021
• IDS_Average interest on new external debt commitments
• IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments 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.