Project ID: 243

China CITIC Bank loans $8 million USD for Phase I of Fiber Optic Cable Project (Linked to #57579)

Commitment amount

$ 14107466.2

Constant 2017 USD

Summary

Funding agency [Type]

China CITIC Bank [State-owned Commercial Bank]

Recipient

Zambia

Sector

Communications (Code: 220)

Flow type

Loan

Concessional

Vague

Category

Intent

Commercial (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2006

Completion

2008

2008-02-01

Actual

Description

In 2005 Chinese state-owned company ZTE Corporation and Zambia Electricity Supply Corporation (ZESCO) Limited signed an implementation contract for Phase I of the Fiber Optic Cable Project. This first phase cost $10.7 million and it was partially financed by an $8 million USD loan from China CITIC Bank also committed in 2005. The loan terms are unknown. The rest of the project cost of $2.7 million USD was paid directly by ZESCO to the contractor as an advance payment. On June 30, 2010, ZTE and ZESCO signed another contract for Phase II of the Fiber Optic Cable Project. Phase II was originally anticipated to cost $43.9 million USD. ZESCO Limited made an advance payment of about $6.9 million USD to ZTE for Phase II. It was initially envisaged that the remaining cost of phase II ($37 million USD) would be financed with a loan from the Bank of China (BOC). However the cost of Phase II increased so on May 20, 2011, BOC and ZESCO signed a $48.4 million USD loan agreement (project #57579). This loan carried the following terms: 8-year maturity, 2-year grace period, and 3.414% interest rate (LIBOR plus 300 basis points) per annum. According to a report from the Zambia Auditor General (source ID 67341), as of December 31, 2017, the loan balance stood at $12.1 million USD.The Fiber Optic Cable Project involved the laying of a 5300 km fiber optic cable network covering 46 districts in Zambia and two international connections to Namibia and Tanzania. Phase I involved the laying of 1700 km of fiber optic cable in six provinces and 15 districts. More specifically, it ran from Sesheke to Livingstone, Choma, Mazabuka, Lusaka, Kabwe, Kapiri Mposhi, Kitwe, Solwezi and Lumwana; and from Lusaka to Kariba and Kafue Gorge Power stations. It was implemented between May 2006 and February 2008.Phase II involved the laying of 2,600 km of fiber optic cable and it sought to connect the Western, Luapula, Northern and Eastern provincial centers. It ran from rom Kabwe to Mkushi, Chinsali, Isoka and Nakonde; Serenje to Chipata and Katete; Mpika to Kasama, Luwingu, Mansa and Kawambwa; Ndola and finally Sesheke to Mongu. Its official commencement date was February 22, 2013. It precise date of completion is unknown.Phase III extended the network by a further 900 km to Mbala, Mpulungu, Petauke, Mfuwe, Siavonga, Kalabo, Kasempa, Mpongwe and Kaoma. It was implemented without financial support from Chinese state-owned banks and it was completed in January 2017.

Additional details

Other project names: Optic Fibre Cable Project or Fibrecom Network Construction Project or 光纤网络建设第一期扩建项目.

Number of official sources

5

Number of unofficial sources

6

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Details

Cofinanced

No

Receiving agencies [Type]

Zambia Electricity Supply Corp. (ZESCO) [State-owned Company]

Implementing agencies [Type]

Zambia Electricity Supply Corp. (ZESCO) [State-owned Company]; ZTE Corporation [State-owned Company]

Loan type

No Information

Gurarantee provided

No

Insurance provided

No