Project ID: 32102

China Eximbank provides RMB 250 million government concessional loan for Code Division Multiple Access (CDMA) Mobile Communication Network Project

Commitment amount

$ 55298238.26

Constant 2017 USD

Summary

Funding agency [Type]

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

Recipient

Cambodia

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

Pipeline: Commitment (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2006

Description

On April 20, 2004, the Chinese Government and the Government of Cambodia signed an RMB 250 million ($30 million) preferential loan framework agreement. Cambodian Fi­nance Ministry Secretary of State Ouk Rabun and Chinese Vice Commerce Minister An Min signed on behalf of their respective governments. The agreement stipulated that China Eximbank would provide a concessional loan worth up to RMB 250 million to the Government of Cambodia (with a 2% interest rate and 20 year maturity). The agreement was signed with Cambodian Prime Minister Hun Sen during his 5-day visit to China (19-23 April 2004).Then, on April 8, 2006, China Eximbank and the Government of Cambodia signed an RMB 250 million government concessional loan (GCL) agreement — based upon the terms and conditions specified in the April 20, 2004 preferential loan framework agreement — for the Code Division Multiple Access (CDMA) Mobile Communication Network Project. The proceeds of the GCL were used by the Government of Cambodia to on-lend to a private company called AZ Distribution Co Ltd (also known as AZ Communication Company and Azcom) — headed by a ruling party (CPP) parliamentarian named Ung Bun Hauv (Ung Bun Hov) — in order to establish a new mobile phone service in Cambodia. AZCOM was then supposed to use the loan proceeds to finance a $30 million commercial contract that it signed with with Huawei Technologies on September 28, 2005.The purpose of the project and the commercial contract was to supply and install CDMA (Code Division Multiple Access) equipment and thereby support Azcom’s expansion efforts. At the time that the loan agreement was signed, opposition lawmaker Son Chhay argued that the deal risked wasting government funds. He said: “It’s a private company. We don’t understand the reason be­hind the government’s commitment to borrowing money from the Chinese for that company. We’re doubtful of how we’re going to benefit from it.” He also noted that Azcom appeared to be the “right hand” of the government. AidData has not identified any evidence that this project was implemented.

Additional details

This project is also known as the AZCOM CDMA 2000 1X Project or the CDMA2000 Mobile Communication Network System Project. The Chinese project title is CDMA2000移动通讯网络系统项目.On August 4, 2005, Azcom received a license from Cambodia’s Ministry of Posts and Telecommunications to install the CDMA2000 system, thereby become the fifth mobile service provider in the country.

Number of official sources

2

Number of unofficial sources

6

Download the dataset

Details

Cofinanced

No

Receiving agencies [Type]

AZ Distribution Co. Ltd. [Joint Venture/Special Purpose Vehicle]; Government of Cambodia [Government Agency]

Implementing agencies [Type]

Huawei Technologies Co., Ltd. [Other]

Loan type

Concessional

Maturity

20 years

Interest rate

2.0%

Grant element

43.74577683%

Gurarantee provided

No

Insurance provided

No