Narrative
Full Description
Project narrative
In July 2005, China, Myanmar, Vietnam, Thailand, Laos, and Cambodia signed a Memorandum of Understanding (MOU) on the Planning and Construction of a Greater Mekong Subregion (GMS) Information Superhighway Network (ISN). Then, in 2007, China Eximbank and the Government of Laos signed a loan agreement for the Lao Section of Greater Mekong Subregion (GMS) Information Superhighway Network (ISN) Project. The estimated borrowing terms of the loan include a 25.4876-years maturity, a 8.7288-year grace period, and a 1.338% interest rate. The purpose of the project was to construct the Lao Section of Greater Mekong Subregion (GMS) Information Superhighway Network (ISN). The project was completed on March 31, 2008.
Staff comments
1. This project is also known as the Terrestrial Fibre Optic Network Project and the GMS ISN Project. The Chinese project title is GMS信 息⾼速公路第⼀阶段. 2. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Laos was 25.4876 years in 2007. AidData estimates the maturity of the China Eximbank loan that supported the Lao Section of Greater Mekong Subregion (GMS) Information Superhighway Network (ISN) Project by using this figure. See https://www.dropbox.com/scl/fi/uno1hf2pjg3nfz78h72c6/Private-and-Official-Sector-PRC-Borrowings-and-Borrowing-Terms-of-Lao-PDR-September-2024.xlsx?rlkey=s7eas067aykllu1lik074l5x5&dl=0. 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Laos was 8.7288 years in 2007. AidData estimates the grace period of the China Eximbank loan that supported the Lao Section of Greater Mekong Subregion (GMS) Information Superhighway Network (ISN) Project by using this figure. See https://www.dropbox.com/scl/fi/uno1hf2pjg3nfz78h72c6/Private-and-Official-Sector-PRC-Borrowings-and-Borrowing-Terms-of-Lao-PDR-September-2024.xlsx?rlkey=s7eas067aykllu1lik074l5x5&dl=0. 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Laos was 1.338% in 2007. AidData estimates the interest rate of the China Eximbank loan that supported the Lao Section of Greater Mekong Subregion (GMS) Information Superhighway Network (ISN) Project by using this figure. See See https://www.dropbox.com/scl/fi/uno1hf2pjg3nfz78h72c6/Private-and-Official-Sector-PRC-Borrowings-and-Borrowing-Terms-of-Lao-PDR-September-2024.xlsx?rlkey=s7eas067aykllu1lik074l5x5&dl=0. 5. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. 6. The total estimated cost of the GMS ISN project is $65.9 million. See https://greatermekong.org/g/sites/default/files/gms-stcf7.pdf. 7. The Myanmar and Cambodia sections of the GMS ISN were also financed with loans from China Eximbank in 2007 (see Record ID#35826 and Record ID#32146).