Project ID: 398

China Eximbank provides $25.06 million loan for CDMA 2000 Fixed Wireless Telephony Project (Linked to Project ID#396, #55744)

Commitment amount

$ 45089565.435075544

Adjusted commitment amount

$ 45089565.44

Constant 2021 USD

Summary

Funding agency [Type]

Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]

Recipient

Chad

Sector

Communications (Code: 220)

Flow type

Loan

Level of public liability

Central government debt

Financial distress

Yes

Infrastructure

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

ODA-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2007-09-19

Actual start

2006-08-01

Actual complete

2010-12-01

Description

In 2007, China Eximbank and the Government of Chad signed a $25.06 million concessional loan for the CDMA 2000 (Fixed Wireless Telephony) Project. This loan reportedly carried the following borrowing terms: a 1.5% interest rate and a 5 year grace period but the maturity length is unknown. The purpose of this project was to rollout a Code Division Multiple Access (CDMA) telecommunications network across 27 towns in Chad. The network was designed to provide three services: mobile phone coverage, fixed phone coverage, and high-speed Internet access. ZTE Corporation was the contractor responsible for project implementation. Construction began in August 2006. The first phase of the construction of the 10,000-line CDMA network in N’Djamena was completed in May 2007. The second phase included a 190,000 line CDMA national network. By the end of 2009, all the 75 sites of this project were completed and commissioned on a trial basis. The project then passed final inspection at the end of 2010. There are indications that the China Eximbank loan for the CDMA 2000 Fixed Wireless Telephony Project financially underperformed vis-a-vis the original expectations of the lender. After a sharp decline in oil prices in 2014-2015, Chad experienced an economic recession and a debt crisis and its government sought to renegotiate the borrowing terms of the China Eximbank loan for the CDMA 2000 Fixed Wireless Telephony Project. A rescheduling agreement was finalized in April 2017: China Eximbank agreed to the lengthen the maturity of the loan and reschedule arrears that had accumulated (as captured via Project ID#55744). It appears that China Eximbank did not require the accumulated arrears to be repaid before rescheduling the maturity of the loan..

Additional details

1. The Chinese project title is CDMA网络项目 or 中乍通讯合作项目. The French project title is Le projet CDMA dans le domaine de télécommunications.

Number of official sources

4

Number of total sources

15

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Details

Cofinanced

No

Direct receiving agencies [Type]

Government of Chad [Government Agency]

Implementing agencies [Type]

ZTE Corporation [State-owned Company]

Loan Details

Interest rate

1.5%

Grace period

5 years

Bilateral loan

Investment project loan