Project ID: 30254

China Eximbank provides RMB 97 million government concessional loan for Phase 1 of the National Optical Fiber Backbone Project (Linked to Project ID#62458)

Commitment amount

$ 15660289.32

Constant 2017 USD

Summary

Funding agency [Type]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Sierra Leone

Sector

Communications (Code: 220)

Flow type

Loan

Concessional

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

ODA-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

2012

Implementation

2013

2012-08-14

Planned start

2013-01-10

Actual start

Completion

2016

2012-12-31

Planned

2016-12-31

Actual

Description

On August 21, 2012, China Eximbank and the Government of Sierra Leone (represented by the Ministry of Finance and Economic Development) signed an RMB 97,000,000 government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO. (2012) 24 TOTAL NO. (426) Series No. 10002012009210] for Phase 1 of the National Optical Fiber Backbone Project. The proceeds of the loan were on-lent by Sierra Leone’s Ministry of Finance and Economic Development to Sierra Leone Cable Limited (SALCAB), a state-owned company in Sierra Leone responsible for owning, operating, and managing the network of the National Optical Fiber Backbone Project. The GCL carried the following terms: 2% interest rate, 5-year grace period, 20-year maturity, 0.5% management fee, and a 0.5% commitment fee. The borrower agreed to deposit project-related revenues in a special account to facilitate repayment. The proceeds of the loan were to be used by the borrower to finance a commercial contract (number 0006941103080A) between Huawei Technologies Company Limited and the Ministry of Information and Communication of the Republic Sierra Leone, which was signed on June 20, 2011.The purpose of this project was to connect Sierra Leone to international fiber that links France with South Africa and thereby provide better internet services to Sierra Leoneans. It involved the laying of 350-400 km of fiber optic cable and the establishment of ICT facilities (including internet connections) in Lungi, Port Loko, Rogbaray, Makeni, Massingbe, Sewafeh, and Koidu. Huawei Technologies was the contractor responsible for implementation. The project commenced on January 10, 2013. Then, in February 2013, the President of Sierra Leone commissioned the landing of the fiber optic cable. The project was officially completed on December 31, 2016. Phase 2 of this project, which is captured in Project ID#62458, was also funded by China Eximbank.

Additional details

This project is also known as the Phase I of the National Fibre Optic Backbone Infrastructure Project. The Chinese project title is 塞拉利昂光纤骨干网项目. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not identify the borrowing terms of this loan. AidData relies on the maturity (20 years, grace period (5 years) and interest rate (2%) reported in the China Eximbank loan agreement that supported this project [CHINA EXIMBANK GCL NO. (2012) 24 TOTAL NO. (426) Series No. 10002012009210]. The loan agreement can be accessed in its entirety at https://www.documentcloud.org/documents/20488797-sle_2012_466

Number of official sources

11

Number of unofficial sources

10

Download the dataset

Details

Cofinanced

No

Receiving agencies [Type]

Government of Sierra Leone [Government Agency]

Implementing agencies [Type]

Chinese Embassy [Government Agency]; Government of Sierra Leone [Government Agency]; Huawei Technologies Co., Ltd. [Other]

Accountable agencies [Type]

Loan type

Concessional

Maturity

20 years

Interest rate

2.0%

Grace period

5 years

Management fee

0.5

Commitment fee

0.5

Grant element

53.10116182%

Gurarantee provided

No

Insurance provided

No

Collateralized/securitized

Yes

Collateral

Special account into which the borrower was required to deposit project-related revenues