China Eximbank provides buyer’s credit loan for GECOMSA Telecommunications Project (Linked to Project ID#484)

In 2006, China Eximbank and the Government of Equatorial Guinea signed a $2 billion oil-backed buyer’s credit facility agreement for various infrastructure projects (captured in Project ID#484). All subsidiary loans approved under this facility agreement carry the following terms: a 5.5% interest rate, a 5 year maturity, and a 2 year grace period. In 2012, China Eximbank and the Government of Equatorial Guinea subsequently signed a subsidiary buyer’s credit loan agreement for the GECOMSA Telecommunications Project. The face value of the loan is unknown. The purpose of the project was to establish a telecoms joint venture called Guinea Ecuatorial Comunicaciones Sociedad Anónima (GECOMSA). In January 2012, GECOMSA was launched, becoming the third telecommunications operator in Equatorial Guinea. During the presentation of this company, the director Maria del Mar Bindang Eneme, reported that 51% of the shares in GECOMSA are held by the Government of Equatorial Guinea and 49% are held by ZTE Corporation. GECOMSA was created to overcome the shortcomings that are occurring in the telecommunications sector and is the third communication company in Equatorial Guinea. The inauguration ceremony for GECOMSA was attended by, among others, the Minister of National Security, Nicolas Obama Nchama, the Minister of Internal Affairs and Local Corporations, Clemente Engonga Nguema Onguene, and the Chinese Ambassador to Equatorial Guinea, Wang Shixiong. GECOMSA officially opened on February 1, 2012. By September 2016, GECOMSA was teetering on the edge of bankruptcy and facing serious allegations of corruption and embezzlement. One allegation is that the Minister of Security, Nicolas Obama Nchama, repeatedly solicited bribes from ZTE Corporation. By September 2020, GECOMSA had accumulated salary arrears, rental arrears, arrears to China Eximbank, arrears to GITGE Equatorial Guinea, and arrears to ORTEL; its outstanding debts were reportedly worth CFA 4 billion.

Additional details

1. The Chinese project title is 兴公司和赤几政府共同投资成立的赤几通信公司（GECOMSA). 2. This loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020.

Number of official sources

8

Number of total sources

13