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Overview

ZTE provides $73.8 million USD supplier's credit loan to Uzbektelecom for supply of equipment for Uzmobile National Mobile Network Development Project in 2015

Commitments (Constant USD, 2023)$77,210,340
Commitment Year•2015Country of Activity•UzbekistanDirect Recipient Country of Incorporation•UzbekistanSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 6, 2015
End (actual)
Dec 31, 2023
Last repayment (originally scheduled)
Dec 31, 2024

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 companies

  • ZTE Corporation (formerly Zhongxing Telecommunication Equipment Corporation)

Receiving agencies

State-owned companies

  • Uzbektelecom JSC

Loan description

ZTE provides $73.8 million USD supplier's credit loan to Uzbektelecom for supply of equipment for project Development of Uzmobile National Mobile Network in 2015

Grant element•19.8587%Interest rate (t₀)•3.9%Interest type•Fixed Interest RateMaturity•9.16 years

Narrative

Full Description

Project narrative

On 6 November 2015, the Group and ZTE Corporation signed a supplier's credit loan for supply of equipment for Uzmobile National Mobile Network Development Project of JSC Uzbektelecom (contract number: No S1UZ2015102201GUS) in the amount of 86,334,395 US dollars (equivalent to 1,065,260,243 thousand soums). The total price of the contract includes the amount of Goods delivery, that is equal to 73,800,860 US dollars (equivalent to 910,611,837 thousand soums) and deferred payment interests as 3.9% per annum without deduction that is equal to 12,533,535 US dollars (equivalent to 154,648,406 thousand soums). The maturity of the agreement is 31 December 2024, until all contractual obligations of both parties are being fully and satisfactorily completed. As of 31 December 2023, all goods were delivered. As of December 2019, the amount outstanding balance is 532,154,533,000 Uzbekistan Soums; as of December 2020, the amount outstanding balance is 440,373,468,000 Soums; as of December 2021, the amount outstanding balance is 369,576,930,000 Uzbekistan Soums; as of December 2022, the amount outstanding balance is 268,924,249,000 Uzbekistan Soums; as of December 2023, the amount outstanding balance is 202,753,272,000 Uzbekistan Soums; As of December 2024, the loan is fully repaid.

Staff comments

1. The contract price for the goods that ZTE provides is $73.8 million USD, meaning this is the price Uzbeketelecom would spend if the company purchased the goods. However, because the company takes out a loan, the total interest accrued is $12.53 million. The specific amount of interest accrued is written in the contract instead of being charged separately. However, to reflect the interest rate, AidData codes 3.6% as the interest rate and subtracts the interest accrued from the total price. Therefore, AidData codes $73.8 million as the commitment amount. 2. In Uzbektelecom's consolidated financial statements starting in 2020 (https://uztelecom.uz/uploads/media/НоваяПапка/Consolidated_financial_statements_of_JSC_Uzbektelecom_2020.pdf) , there is a reference to three new loans committed in 2019. However, the reports do no provide descriptions on these loans. This issue warrants more investigation.