Completed Mixed AidData Chinese Aid

Chinese Government provides AUD $4.752 million grant for acquisition of commercial ferry

$4.75M USD

Funder	China Ministry of Commerce
Recipient Organization	Government of Kiribati
Country	Kiribati
Start Date	Jan 01, 2021
End Date	Jun 06, 2028
Duration	2,713 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92209`

Grant Description

On September 20, 2019, the Government of Kiribati announced that it was severing diplomatic ties with the Republic of China (‘Taiwan’) and establishing diplomatic ties with the People’s Republic of China (‘China’).

On the same day, the PRC Government reportedly agreed — at least in principle — to donate two civil aviation aircraft and one commercial ferry (also known as a ‘tug and barge vessel’) to the Government of Kiribati.

Kiribati’s President, Taneti Maamau, reportedly requested donations from the PRC for the purchase of commercial aircraft after rejecting an offer from Taiwan to provide loans for the purchase of the aircraft.

Then, in 2021, the Chinese Government reportedly issued a grant worth $17,532,549.04 to the Government of Kiribati for the purchase of an aircraft from Embraer (the Empresa Brasileira de Aeronáutica) in Brazil (captured via Record ID#90098).

In December 2019, the first Embraer E190-E2 arrived in Kiribati (as part of an order for two aircraft from December 2018).

The Chinese government also issued a grant worth AUD $4.752 million for the acquisition of a 24 meter tug and 34 meter cargo barge vessel for the Kiribati National Shipping Line (captured via captured via Record ID#92209). On November 19th, 2022, the handover ceremony for the tug and barge vessel donation occurred at the KNSL Wharf.

H.E. Ambassador Tang Songgen was very delighted to join Hon. Vice President Teuea Toatu, Hon. Minister of MICT Tekeeua Tarati also attend the event.

According to Tekeeua Tarati, Chinese Ambassador to Kiribati Tang Songgen said that the donation was a cooperation outcome of the two sides in jointly building the Belt and Road and implementing the Global Development Initiative, which aligns with Kiribati's "20-Year Vision" strategy.

📋 Staff Comments

Taiwanese reports suggest that the Chinese Government donated two Comac C919s (Chinese aircraft) and one Boeing planes. A Taiwanese news report indicates that Kiribati received one Comac C919 (a Chinese airplane) worth $30 million and a Boeing 737. Foreign Policy reports the monetary value of these aircraft to be $60 million. However, AidData has not independently corroborated these claims, which warrant further investigation.
The Lowy Institute identifies a grant commitment of $42,124,247.13 in 2020 for the acquisition of two Embraer aircraft and a grant disbursement of $17,532,549.04 in 2021 for the acquisition of one Embraer aircraft. The Lowy Institute project identification number for the aircraft donation is KI-TW-20-21-3.
The Government of Kiribati budget code for the donation is 2404K075.
The Kiribati National Shipping Line (KNSL) is the only Government owned shipping company that provide shipping service in Kiribati prior to the entry of the private sector.
As of July 2022, the $6 million grant commitment from the Chinese Government for the acquisition of a commercial ferry was not captured in the Lowy Institute’s Pacific Aid Map.

📚 Sources & References

Taiwan says China lures Kiribati with airplanes after losing another ally
As Taiwan Loses Influence
China Gains Ground in Race with US
DEVELOPMENT BUDGET FOR 2021
Kiribati re-embraces China
Air Kiribati Receives its First ‘Game Changer’ E190-E2
Embraer delivers first E190-E2 to Air Kiribati
MICTTD STRATEGIC PLAN 2021-2024
Kiribati NDC Investment Plan
New Year Greetings
Handover Ceremony Held for China-aided Kiribati Barge Tug Project
Lowy Institute Pacific Aid Map
Ambassador Tang Songgen Attends the Handover Ceremony of China-aid Tug and Barge
Kiribati receives China-aided tug and cargo barge 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 Kiribati

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