Foreign and Military Affairs

China to forgive half of Africa rail debt

By Wang Qingyun (chinadaily.com.cn)
Updated: 2011-01-20 10:58

Chinese Vice-Minister of Commerce Zhong Shan signed an agreement with counterparts from Zambia and Tanzania in Lusaka, Zambia's capital, on Jan 19, to forgive 50% of the debt from China to build and operate the Tanzania-Zambia railway.

The Chinese government took the action because of the traditional friendship between China and Africa, and Chinese people want to do their best to support African people's development, said Zhong at the signing ceremony. He also said the Chinese government hopes the railway will operate with less debt and boost the regional economy and benefit the two countries.

China helped construct the Tanzania-Zambia railway at the request of the leadership of Tanzania and Zambia in 1970, and handed it over after its completion in 1976. The Chinese government provided an interest-free loan of 988 million yuan to complete the project, and continued to provide such loans and technicians to ensure its operation.