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Overview

CDB provides €19 million EUR buyer’s credit loan to Mobilkom a.s. for the CDMA2000 Network Deployment Project

Commitments (Constant USD, 2023)$43,208,437
Commitment Year•2007Country of Activity•Czech RepublicDirect Recipient Country of Incorporation•Czech RepublicSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 1, 2007
End (actual)
May 14, 2007

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Private Sector

  • MobilKom a.s. (Ufon)

Implementing agencies

State-owned companies

  • ZTE Corporation (formerly Zhongxing Telecommunication Equipment Corporation)

Loan description

CDB provides €19 million EUR buyer’s credit loan to Mobilkom a.s. for the CDMA2000 Network Deployment Project

Interest type•Unknown

Narrative

Full Description

Project narrative

In January 2007, Mobilkom a.s. — a Czech internet, cellular, and communications company — announced that they would partner with ZTE — a Chinese state-owned telecom equipment provider — as the equipment and infrastructure vendor for the CDMA2000 Network Deployment Project. On May 14, 2007, the network was launched. The network marked ZTE's first CDMA2000 1xEV-DO (Evolution-Data Optimized) Revision A network — a 3G technology used to wirelessly transmit radio signals and often adopted by mobile providers — and was the first commercially deployed CDMA2000 1xEV-DO Rev.A network in Europe. Then, in late 2007, China Development Bank (CDB) entered into a €19 million EUR buyer’s credit loan agreement with Mobilkom for the CDMA2000 Network Deployment Project. The proceeds of the loan would be used by the borrower fund the construction and deployment costs from a mobile communications network, after ZTE's involvement in its equipment and infrastructure. Mobilkom and CBD did not announce the deal until March 2008. However, in late 2011, industry reporting found that MobilKom owed an unspecified amount of money to the China Development Bank and was required to repay approximately hundreds of thousands of euros.