Overview

ZTE provides $150 million loan for National Telecommunications Network Construction Project (Linked to Record ID#64790)

Commitments (Constant USD, 2023)$315,560,445

Commitment Year•2004Country of Activity•MyanmarDirect Recipient Country of Incorporation•MyanmarSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2004

First repayment (originally scheduled): Dec 31, 2005

Last repayment (originally scheduled): Dec 29, 2013

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned companies

ZTE Corporation (formerly Zhongxing Telecommunication Equipment Corporation)

Receiving agencies

State-owned companies

Myanmar Posts and Telecommunications

Implementing agencies

State-owned companies

Myanmar Posts and Telecommunications
ZTE Corporation (formerly Zhongxing Telecommunication Equipment Corporation)

Loan description

ZTE provides $150 million loan for National Telecommunications Network Construction Project

Grace period•2 yearsGrant element•29.0937%Interest rate (t₀)•3%Interest type•Fixed Interest RateMaturity•10 years

Narrative

Full Description

Project narrative

On July 16, 2004, ZTE Corporation and Myanmar Posts and Telecommunication (MPT) — a state-owned enterprise in Myanmar — signed a commercial contract and deferred payment agreement for the National Telecommunications Network Construction Project. The original borrowing terms of the loan included a 10-year maturity, a 2-year grace period, and a 3% interest rate. The purpose of the project was to help the MPT ministry build 300,000 fixed phone lines.

Staff comments

1. In 2006, a $31.5 million loan agreement was signed by China Eximbank and MPT for Phase 1 of the National Telecommunications Network Construction Project (as captured via Record ID#64790). Some sources suggest that this $31.5 million loan was part of the $150 million loan commitment (captured via Record ID#34116). This issue warrants further investigation.