Latest News

Figures released by Statistics Botswana today show that inflation in A...
Tebogo Leepile, a final year PhD Candidate in Integrated Studies in La...
Botswana Democratic Party (BDP) activist Macdonald Peloetletse could f...
Senior officials from Botswana and Zambia are working with Zimbabwe on...

Gov't drops China loan over Ts and Cs

Changing lanes: Government says its policy stance on Chinese loans has changed PIC: MORERI SEJAKGOMO
Government has dropped a proposed loan for China to fund rehabilitation of the 300-kilometre Nata-Maun road, after the two sides deadlocked over the terms of the agreement.

BusinessWeek has learnt that one of the sticking points of the negotiations was over the choice of main contractor for the project. Negotiations had run from June and collapsed without agreement recently, it is understood.

China had provided a P3.4 million grant in May 2019 to fund the road’s feasibility study, in anticipation of negotiations towards the loan. Botswana had secured a pledge of P10.2 billion in concessional loans from China after government’s participation at the Forum for China Africa Cooperation in September 2018. The Chinese government had also written off P80 million in existing debt owed by Botswana.

“The (Transport) ministry had earmarked the possibility of securing the loan from China for the road rehabilitation, but that has been withdrawn due to the terms of the loan,” Finance ministry permanent secretary, Wilfred Mandlebe told the Parliamentary Accounts Committee on Monday.

“When we could not agree on the terms, we noted that the project was urgent and we could not go back and forth with the Chinese on the terms.

“The decision was that we use our own resources and we are going to come to Parliament with a supplementary budget to fund that.

“The Chinese funding was one of the possible sources of funding, but it was taking long.”

Mandlebe added: “The Chinese did the feasibility study and came up with a report and on that basis we started negotiating the terms.

“It was back and forth and

we decided that we must fast track the project.

“They had their own terms beyond the financial terms; terms such as using Chinese companies and those are things we contended with.

“The deal may financially look good but it was restricted to them.”

In a blog post last November, Chinese Ambassador to Botswana, Zhao Yanbo wrote that he had travelled on the Nata-Maun road and described it as being ‘in dire straits’. The route is a major economic corridor to the tourism heartland and the link to the Kazungula Bridge which is the preferred route to the rest of Africa.

“Due to long overdue service and poor maintenance the road is in dire straits now,” Zhao wrote.

“The road near the salt pans in particularly, is full of potholes due to the low-lying terrain and frequent flood erosions.

“Because of the traffic problems they cause, those travelling from Francistown to Maun have to take a nearly 100-km detour.

“Surrounding tourist attractions have also suffered severe business losses.

“The residents were very happy when they heard that the Chinese government was going to help rebuild the road.”

The latest developments come as government closely scrutinises its spending and debt levels, as the COVID-19 impact has burnt holes in the fiscus. Finance minister, Thapelo Matsheka has said government will largely look domestically for sources of funding, although approaches to bodies such as the World Bank and IMF could be considered.


Banners ?>


Botswana deriorating labour relations

Latest Frontpages

Todays Paper Todays Paper Todays Paper Todays Paper Todays Paper Todays Paper
Adana Escort Adıyaman Escort Afyon Escort Ağrı Escort Aksaray Escort Amasya Escort Ankara Escort Antalya Escort Antep Escort Ardahan Escort Artvin Escort Aydın Escort Balıkesir Escort Bartın Escort Batman Escort Bayburt Escort Bilecik Escort Bingöl Escort Bitlis Escort Bolu Escort Burdur Escort Bursa Escort Çanakkale Escort Çankırı Escort Çorum Escort Denizli Escort Diyarbakır Escort Düzce Escort Edirne Escort Erzincan Escort Elazığ Escort Erzurum Escort Eskişehir Escort Giresun Escort Gümüşhane Escort Hakkari Escort Hatay Escort Iğdır Escort Isparta Escort İskenderun Escort İstanbul Escort İzmir Escort İzmit Escort Karabük Escort Karaman Escort Kars Escort Kastamonu Escort Kayseri Escort Kıbrıs Escort Kırıkkale Escort Kırklareli Escort Kırşehir Escort Kilis Escort Kocaeli Escort Konya Escort Kütahya Escort Malatya Escort Manisa Escort Maraş Escort Mardin Escort Mersin Escort Muğla Escort Muş Escort Nevşehir Escort Niğde Escort Ordu Escort Osmaniye Escort Rize Escort Sakarya Escort Samsun Escort Siirt Escort Sinop Escort Sivas Escort Şırnak Escort Tekirdağ Escort Tokat Escort Trabzon Escort Tunceli Escort Urfa Escort Uşak Escort Van Escort Yalova Escort Yozgat Escort Zonguldak Escort Alaçatı Escort Aliağa Escort Alsancak Escort Bornova Escort Buca Escort Çeşme Escort Çiğli Escort Gaziemir Escort Karşıyaka Escort fethiye escort iskenderun escort iskenderun escort iskenderun escort iskenderun escort iskenderun escort