Zim, China seal new $213 million deal

Minister Patrick Chinamasa

Minister Patrick Chinamasa

Harare Bureau
The People’s Republic of China yesterday extended a $153 million loan facility to Zimbabwe for the upgrade of the Robert Gabriel Mugabe International Airport, as the two countries continue to deepen their bilateral relationship.

The Asian giant also announced two grants for the construction of the New Parliament Building in Mount Hampden, including the High Performance Computing Centre being constructed at the University of Zimbabwe, taking the total to $213 million.

The loan and grants will be administered through the Export-Import Bank of China.

Finance and Economic Development Minister Mr Patrick Chinamasa and Chinese Ambassador to Zimbabwe Huang Ping signed the deal in Harare yesterday on behalf of the two Governments.

The $153 million loan, which carries a concessionary two percent interest rate, is payable over 20 years.

It also has a seven-year grace period.

Minister Chinamasa said Government expects the upgrading of the airport to boost tourist arrivals as is the case with the Victoria Falls Airport, which is experiencing a spike in arrivals after the completion of the refurbishment exercise.

“The Government of the People’s Republic of China also gave support to the people of Zimbabwe during the liberation struggle,” said Minister Chinamasa.

“On the attainment of independence, we elevated the level of cooperation to economic. It is this relationship that we are all gathered this morning to witness.

“Let me also hasten to say that Zimbabwe has in the past received support targeting various projects in education, agriculture, energy, transport and communication. We remain thankful,” he said.

Funding for the projects was first announced after the State visit by Chinese President Xi Jinping in 2015.

“As you may be aware, this support springs from the State visit by his Excellency Xi Jinping on 1 December 2015, where he pledged to support the construction of a new Parliament. The new Parliament building will accommodate 650 members with room for expansion,” he said.

Ambassador Huang Ping said the Chinese are proud to be partnering Zimbabwe at this crucial socio-economic stage.

“It is my great honour to come and sign these three agreements on behalf of my government together with Honourable Minister Chinamasa, representative of the Government of the Republic of Zimbabwe, at this juncture of Zimbabwe’s socio and economic development.”

He added that China, as an all-weather friend, will continue to support the Zimbabwean Government “through thick and thin”.

“We have a very good traditional friendship, we want to strengthen this good relationship and expand our cooperation to all the sectors,” he said.

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  • George Bango

    Honestly is the targeted project a priority now, we have health services, resuscitation of industries and many other sectors. By the way has China ever given really money or milked more resources from Zimbabwe.

    • chinos

      We are the milking cow here. There always talk of mega projects that vanish in thin air

      • New Zimbabwe

        Honestly ,whoever is negotiating with these Chinese should get cash loan period,not awarding Chinese with tenders for constructing the airport and the new parliament building.how does the two get on top priority more than the agriculture which is our economic backbone?.

        • chinos

          And they do everything for us and leave us debt. All the money back to them

          • DDL

            This new administration is making deals with the wrong people. They need to make deals with the people first. Zanu PF are wrong in thinking that when we took to the streets it was to endorse that party. We took to the streets for a new beginning. Which ever party survives and which ever Politicians control our destiny we are yet to see, But this time it needs to be our decision. Not ED. Not Morgan Not Chiwenga not The AU not SADEC , not Sibusiso. Not any body but the people of Zimbabwe…

  • billion

    we dont need loans, find our $15 Billion

    • Essexvale

      Nice one old chap!

  • Essexvale

    Nothing for improved health and other service delivery?

  • True Zimbabwean

    This new administration is making deals with the wrong people. They need to make deals with the people first. Zanu PF are wrong in thinking that when we took to the streets it was to endorse that party. We took to the streets for a new beginning. Which ever party survives and which ever Politicians control our destiny we are yet to see, But this time it needs to be our decision. Not ED. Not Morgan Not Chiwenga not The AU not SADEC , not Sibusiso. Not any body but the people of Zimbabwe……

  • ROYAL MTHWAKAZI

    There is one thing the Chinese still have to learn. If you want your investments in any country to be secure in the long term, you invest in sustainable democracy, not in political parties or political leaders.

    It would appear all the previous bilateral agreements they signed with Mugabe came to nought because they were uncomfortable with him as President of Zim, owing to his advanced age. Now that a much younger Mnangagwa, relatively speaking, at 75 has taken over they are jumping in with new loans. They forget that Mnangagwa is unelected – he still has to face an election next year.

    The only permanent security to investments is Democracy and Democratic institutions – not the Military, not a political party or a political leader!!