China Eximbank provides RMB 58 million government concessional loan for Phase 1 of University of Ghana ICT-Enabled Distance Learning Project at the University of Ghana (Linked to Record ID#30481)

Project narrative

On September 3, 2008, China Eximbank and the Government of Ghana signed an RMB 58 million government concessional loan (GCL) agreement for Phase I of the ICT-Enabled Distance Learning Project at the University of Ghana. The agreement was signed by Ghana's Finance Minister Kwadwo Baah Wiredu and the China’s Deputy Minister of Commerce Fu Ziying. The GCL carried the following borrowing terms: a 20 year maturity, a 5 year grace period, and a 2% interest rate. The loan’s (principal) amount outstanding was GHS 26,100,000 ($4,660,714) as of December 31, 2020 and GHS 24,400,000 ($4,692,307) as of December 31, 2021. Phase 1 of the project involved the rollout of UGNet, a secure and reliable information infrastructure backbone that connects all the major buildings on the University of Ghana’s Legon Campus, and provides internet connectivity, email and IP-based services to its faculty and departments. In addition, connectivity was provided to the Accra-City Campus and the College of Health Sciences at Korle-bu. Phase 1 also involved the provision of ICT equipment, including desktops, laptops, servers and projectors to the University of Ghana. The ultimate objective of this project was to improve the quality of teaching and learning and to increase access to education. Tsinghua Unigroup was the contractor responsible for implementation. Phase I was officially launched on December 8, 2009, and budget documents from the Government of Ghana demonstrate that China Eximbank disbursed $1.62 million for this project by September 2009 and an additional $2.46 million (out of an expected $2.58 million) by September 2010. This project was ultimately completed, but its precise completion date is unknown. There are some indications that the China Eximbank loan for Phase 1 of the University of Ghana ICT-Enabled Distance Learning Project at the University of Ghana may have financially underperformed vis-a-vis the original expectations of the lender. According to the World Bank’s International Development Statistics, the Government of Ghana had accumulated principal and interest arrears to one or more official sector Chinese creditors worth $908,337,346.70) in 2020 ($763,228,526.60 in principal arrears and $145,108,820.10 in interest arrears). There are some indications that the China Eximbank loan for Phase 1 of the Kpong Water Expansion Supply Project may have financially underperformed vis-a-vis the original expectations of the lender. According to the World Bank’s International Development Statistics, the Government of Ghana had accumulated principal and interest arrears to one or more official sector Chinese creditors worth $908,337,346.70) in 2020 ($763,228,526.60 in principal arrears and $145,108,820.10 in interest arrears). Then, on December 19, 2022, the Government of Ghana announced a sovereign default, suspending debt service on its Eurobonds, its commercial loans, and most of its bilateral loans. In June 2013, a steering committee for Phase 2 of this project was established. Phase 2 was also financed by China Eximbank (as captured via Record ID#30481).