Project ID: 30340

China Eximbank provides $100 million preferential buyer’s credit for Phase 1 of the Nigeria National Information and Communication Technology Infrastructure Backbone Project (NICTIB) (linked to #73385)

Commitment amount

$ 97166187.02

Constant 2017 USD

Summary

Funding agency [Type]

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

Recipient

Nigeria

Sector

Communications (Code: 220)

Flow type

Export Buyer's Credit

Concessional

Yes

Category

Intent

Mixed (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

2013

Completion

2018

2015-06-01

Planned

2018-08-03

Actual

Description

In November 2006, Galaxy Backbone Ltd — a public enterprise of the Federal Government of Nigeria incorporated in 2006 with the primary mandate of setting up and operating a unified Information and Communication Technology (ICT) infrastructure platform that addresses the connectivity, transversal and other technology challenges — signed a $117 million commercial contract with Huawei Technologies Co. Ltd for Phase 1 of the Nigeria National Information and Communication Technology Infrastructure Backbone (NICTIB) Project. Nearly four and a half years later, in May 2011, China Eximbank agreed in principle to provide a $100 million preferential buyer’s credit to finance 85% of the cost of the commercial contract. Then, on January 5, 2013, China Eximbank and the Government of Nigeria signed a $100,000,000 preferential buyer’s credit (PBC) agreement for Phase 1 of the Nigeria National Information and Communication Technology Infrastructure Backbone (NICTIB) Project. Phase 1 was completed on or around August 3, 2018. The PBC carried the following terms: 20 year maturity, 7 year grace period, and a 2.5% interest rate. The final maturity date of this loan is September 21, 2032. As of March 31, 2020, Nigeria’s Debt Management Office (DMO) reported that the China Eximbank had disbursed 100% of the original face value of this loan. Under the terms of the PBC agreement, the Government of Nigeria was responsible for paying 15% of the cost of the commercial contract with Huawei Technologies Co. Ltd prior to project implementation. Advance payment delays by the Government of Nigeria resulted in major project implementation delays. In December 2006, Galaxy Backbone Ltd made an advance payment of $10 million to Huawei Technologies Co. Ltd. Then, in December 2013, the Federal Ministry of Finance of Nigeria — on behalf of Galaxy Backbone Ltd — paid out the remaining balance of the advance payment ($7.65 million) to Huawei Technologies Co., Ltd and officially requested that Huawei Technologies Co., Ltd. commence project implementation. The purpose of the Phase 2 is to extend the fiber optic cable network 19 states in Northern Nigeria. More specifically, the cable will run from Abuja to Plateau, Gombe, Bauchi, Maiduguri, Kano and the rest of Northwestern Nigeria. Upon completion of Phase 2, it is envisaged that the fiber optic cable network will be 3441 km in length. China Eximbank and the Government of Nigeria signed a $328,000,000 preferential buyer’s credit (PBC) agreement on September 5, 2018 for Phase 2 of the Nigeria National Information and Communication Technology Infrastructure Backbone (NICTIB) Project (described in project #73385).

Additional details

This project is also known as the Galaxy Backbone ICT Project and Nigerian ICT Infrastructure Backbone Project. The Chinese project title is 国家光纤主干网 or 骨干网一期提. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not record the grace period for this loan. AidData records the grace period (7 years) that is reported by Nigeria’s Debt Management Office (DMO) in its “Status of Loans Obtained from China Exim As At March 31, 2020” publication. Loan terms can be found in the source '尼日利亚政府从中国进出口银行获得11亿美元贷款'.This project captures the $100 million China Eximbank loan for Phase 1 of the NICTIB Project. #73385 captures the $328 million China Eximbank loan for Phase 2 of the NICTIB Project.

Number of official sources

11

Number of unofficial sources

4

Download the dataset

Details

Cofinanced

No

Receiving agencies [Type]

Government of Nigeria [Government Agency]

Implementing agencies [Type]

Galaxy Backbone Limited [State-owned Company]; Huawei Technologies Co., Ltd. [Other]

Loan type

Concessional

Maturity

20 years

Interest rate

2.5%

Grace period

7 years

Grant element

52.39978832%

Gurarantee provided

No

Insurance provided

No