Lock, stock and barrel
Leaked documents and a Twitter spat involving finance minister Calle Schlettwein, economic planning minister Obeth Kandjoze and Job Amupanda have lifted the veil how Namibia accepted lock, stock and barrel Chinese conditions for a N$3.1 billion airport upgrading deal.
Leaked documentation surrounding a Hosea Kutako International Airport (HKIA) upgrading deal has lifted the veil on how the Namibian government allegedly pandered to the whims of its Chinese counterpart, while accepting wholesale the Asian country's conditions for a US$215.5 million (N$3.1 billion) loan and grant package.
Affirmative Repositioning (AR) leader Job Amupanda is now leading the charge against the loan, questioning on social media how the agreement - “terms and everything” - were reached, while suggesting Namibian citizens are being “fed lies” because the two governments have already concluded the loan agreement.
He said while Chinese ambassador to Namibia, Zhang Yiming, had devised the terms of the loan agreement, the Namibian government accepted the terms “unchanged and with no suggestion, as dictated by the Chinese”.
Amupanda, who gained access to correspondence between Zhang, finance minister Calle Schlettwein and economic planning minister and National Planning Commission director-general Obeth Kandjoze, challenged anyone in government to dispute the existence and content of the letters.
Interestingly, the exchange of the letters happened before the Forum on China-Africa Cooperation (FOCAC) meeting that took place on 3 and 4 September, where the Chinese government offered loans worth US$60 billion to Africa and N$10 billion to Namibia.
It now appears that details of the Chinese airport loan facility may have been worked out during a state visit by President Hage Geingob in March to the Asian country, when he took along a massive delegation that included Namibia Airports Company (NAC) bigwigs and a host of businesspeople, among others.
It also appears that far from China offering the airport loan, it was Namibia who had asked.
On 2 July, Zhang wrote to Kandjoze in response to a financing proposal the minister had written to him about on 9 May for the airport.
wZhang “assures” Kandjoze that the Chinese government “attaches great importance” to the HKIA upgrade project.
He said the Chinese government would be “willing to provide assistance” that it can “afford to this project”.
“Since HKIA is a landmark project which draws attention from top leaders of our two countries, and considering the economic benefit that might accrue to the airport itself, and the significant social impact that the upgrading may bring about, we are proposing a modality of a combination of 'grants plus loans' to be provided by the Chinese government,” Zhang said.
His proposed modality was that the Chinese government fund the project by a not more than 90% concessional loan at an interest rate of 2% annually over a 20-year period, inclusive of a five-year grace period with a 0.25% management fee and commitment fee respectively; as well as a 10% of grant, while the discount on the loan would be up to 35%.
Schlettwein wrote to Zhang on 20 August, referring to a response from Kandjoze, which had been sent on 9 July.
Schlettwein said the offer by the Chinese government was “in accord with the high-level intent to implement [the] impactful project”, and confirmed the intention of the Namibian government to “utilise the proposed funding”, and accepted wholesale the proposed terms as set out by Zhang.
He also provided a breakdown of the estimated costs as assessed by the World Bank Group for the project, which amounted to about US$215.5 million.
Schlettwein, however, proposed that the loan be granted not in US dollars but in Renminbi (RMB), which is the Chinese currency, due to Namibia's current foreign debt, which is largely dominated by US dollars.
Kandjoze's correspondence with Zhang followed shortly after Geingob went on a state visit to China from 28 March to 2 April.
Schlettwein wrote on Twitter on Tuesday that Amupanda got it “wrong” with his allegations.
“Firstly, we have as yet not negotiated loans. We have received an offer under the FOCAC frame from China and indicated which infrastructure development needs Namibia prioritised. Secondly, it is the exclusive mandate of MOF [finance ministry] to negotiate loans binding the State,” Schlettwein wrote.
He continued: “[Namibia] HAS NOT signed any loan of 10 billion with China. We have agreed with China in terms of the FOCAC cooperation agreement that Namibia may access a loan facility of up to N$10 billion. We have not yet made use of it.”
Kandjoze then wrote: “I surely am deployed by the Swapo Party and government to serve our republic the best way our constitution and laws allow me to do. I solemnly stand by my confirmation that Namibia is engaged with the world's emerging power on the basis of a win-win and respectful engagement.”
At the time of going to print, Schlettwein had not responded to questions sent to him because he had travelled to Ethiopia.
CATHERINE SASMAN
Affirmative Repositioning (AR) leader Job Amupanda is now leading the charge against the loan, questioning on social media how the agreement - “terms and everything” - were reached, while suggesting Namibian citizens are being “fed lies” because the two governments have already concluded the loan agreement.
He said while Chinese ambassador to Namibia, Zhang Yiming, had devised the terms of the loan agreement, the Namibian government accepted the terms “unchanged and with no suggestion, as dictated by the Chinese”.
Amupanda, who gained access to correspondence between Zhang, finance minister Calle Schlettwein and economic planning minister and National Planning Commission director-general Obeth Kandjoze, challenged anyone in government to dispute the existence and content of the letters.
Interestingly, the exchange of the letters happened before the Forum on China-Africa Cooperation (FOCAC) meeting that took place on 3 and 4 September, where the Chinese government offered loans worth US$60 billion to Africa and N$10 billion to Namibia.
It now appears that details of the Chinese airport loan facility may have been worked out during a state visit by President Hage Geingob in March to the Asian country, when he took along a massive delegation that included Namibia Airports Company (NAC) bigwigs and a host of businesspeople, among others.
It also appears that far from China offering the airport loan, it was Namibia who had asked.
On 2 July, Zhang wrote to Kandjoze in response to a financing proposal the minister had written to him about on 9 May for the airport.
wZhang “assures” Kandjoze that the Chinese government “attaches great importance” to the HKIA upgrade project.
He said the Chinese government would be “willing to provide assistance” that it can “afford to this project”.
“Since HKIA is a landmark project which draws attention from top leaders of our two countries, and considering the economic benefit that might accrue to the airport itself, and the significant social impact that the upgrading may bring about, we are proposing a modality of a combination of 'grants plus loans' to be provided by the Chinese government,” Zhang said.
His proposed modality was that the Chinese government fund the project by a not more than 90% concessional loan at an interest rate of 2% annually over a 20-year period, inclusive of a five-year grace period with a 0.25% management fee and commitment fee respectively; as well as a 10% of grant, while the discount on the loan would be up to 35%.
Schlettwein wrote to Zhang on 20 August, referring to a response from Kandjoze, which had been sent on 9 July.
Schlettwein said the offer by the Chinese government was “in accord with the high-level intent to implement [the] impactful project”, and confirmed the intention of the Namibian government to “utilise the proposed funding”, and accepted wholesale the proposed terms as set out by Zhang.
He also provided a breakdown of the estimated costs as assessed by the World Bank Group for the project, which amounted to about US$215.5 million.
Schlettwein, however, proposed that the loan be granted not in US dollars but in Renminbi (RMB), which is the Chinese currency, due to Namibia's current foreign debt, which is largely dominated by US dollars.
Kandjoze's correspondence with Zhang followed shortly after Geingob went on a state visit to China from 28 March to 2 April.
Schlettwein wrote on Twitter on Tuesday that Amupanda got it “wrong” with his allegations.
“Firstly, we have as yet not negotiated loans. We have received an offer under the FOCAC frame from China and indicated which infrastructure development needs Namibia prioritised. Secondly, it is the exclusive mandate of MOF [finance ministry] to negotiate loans binding the State,” Schlettwein wrote.
He continued: “[Namibia] HAS NOT signed any loan of 10 billion with China. We have agreed with China in terms of the FOCAC cooperation agreement that Namibia may access a loan facility of up to N$10 billion. We have not yet made use of it.”
Kandjoze then wrote: “I surely am deployed by the Swapo Party and government to serve our republic the best way our constitution and laws allow me to do. I solemnly stand by my confirmation that Namibia is engaged with the world's emerging power on the basis of a win-win and respectful engagement.”
At the time of going to print, Schlettwein had not responded to questions sent to him because he had travelled to Ethiopia.
CATHERINE SASMAN
Comments
Namibian Sun
No comments have been left on this article