China Eximbank provides RMB 1.165 billion government concessional loan for Sihanoukville-Hong Kong Submarine Cable Project

Project narrative

In 2023, China Eximbank and the Government of Cambodia signed an RMB 1,165,995,000 government concessional loan (GCL) agreement for the Sihanoukville-Hong Kong Submarine Cable Project. The loan carries the following borrowing terms: a 20 year maturity, a 7 year grace period, and a 1.25% interest rate. The borrower expects to repay the loan with the proceeds from the sale of internet services. During calendar year 2023, China Eximbank disbursed RMB 232,220,000 in support of the Sihanoukville-Hong Kong Submarine Cable Project. As of early 2024, the lender planned to disburse RMB 466,887,500 in 2024 and RMB 466,887,500 in 2025. The purpose of the project is to construct a 2,715-kilometer submarine fiber optic cable from Hong Kong to Sihanoukville. The project also involves the construction of an optical cable landing station in Koki village, Bit Trang commune, and Prey Nob district. Upon completion, the cable is expected to replace an existing one and make Cambodia’s internet services faster and cheaper. CRCC Harbor & Channel Engineering Bureau Group Co., Ltd is the contracted construction firm and Creative Green Research Co., Ltd is a consultation firm. Their work is being oversee by Cambodia’s Ministry of Posts and Telecommunications. In February 2022, an inter-ministerial working group gave the green light for the construction of the submarine fiber optic cable after reviewing the project’s Environmental and Social Impact Assessment (ESIA) report. However, the inter-ministerial working group did ask CRCC Harbor & Channel Engineering Bureau Group Co., Ltd to reduce the impact on marine biodiversity as much as possible when digging on the seabed. The inter-ministerial group also asked CRCC Harbor & Channel Engineering Bureau Group Co., Ltd to prepare a solid and liquid waste management plan in accordance with the technical specifications and must study carefully the coral system in the area. Project implementation officially commenced on February 17, 2023. The project was originally scheduled for completion in 2024.