CDB provides $249.5 million loan for Túpac Katari (TKSAT-1) Communications Satellite (Linked to Record ID#36269 and #36270)

Project narrative

On December 23, 2010, China Development Bank (CDB) and the Government of Bolivia signed a $251,124,000 loan agreement for the Túpac Katari (TKSAT-1) Communications Satellite Project. The face value of the loan was subsequently downsized to $249,539,000. The loan carried the following borrowing terms: an interest rate of 6-month LIBOR plus a 2.7% margin, a maturity of 16 years, a grace period of 3 years, a 0.3% commitment fee, and a 0.75% upfront (management) fee. The borrower was expected to use the proceeds of the loan to partially finance a commercial contract between the Government of Bolivia and Great Wall Industry Corporation (CGWIC), which was signed on December 13, 2010. The lender made disbursements worth $120,315,500 between 2010 and 2012, $113,928,000 in 2013, $14,510,500 in 2014, and $785,000 in 2015. The borrower made loan repayments worth $5,601,763 in 2013 ($0 in principal and $5,601,763 in interest/fees), $7,736,731 in 2014 ($0 in principal and $7,736,731 in interest/fees), $28,418,960 in 2015 ($20,795,000 in principal and $7,623,960 in interest/fees), $28,810,793 in 2016 ($20,795,000 in principal and $8,015,793 in interest/fees), $29,127,846 in 2017 ($20,795,000 in principal and $8,332,846 in interest/fees), $29,654,894 in 2018 ($20,795,000 in principal and $8,859,894 in interest/fees), $29,490,694 in 2019 ($20,795,000 in principal and $8,695,694 in interest/fees), an unknown amount in 2020, $24,305,073 in 2021 ($20,795,000 in principal and $3,510,073 in interest/fees), $24,745,047 in 2022 ($20,795,000 in principal and $3,950,047 in taxes/fees), and $27,176,679 in 2023 ($20,795,000 in principal and $6,381,679 in taxes/fees). The loan’s (principal) amount outstanding was $120,315,500 as of December 31, 2012, $234,243,500 as of December 31, 2013, $248,754,000 as of December 31, 2014, $228,744,000 as of December 31, 2015, $207,949,000 as of December 31, 2016, $187,154,000 as of December 31, 2017, $166,359,000 as of December 31, 2018, $145,564,000 as of December 31, 2019, $124,769,000 as of December 31, 2020, $103,974,000 as of December 31, 2021, $83,179,000 as of December 31, 2022, and $62,384,000 as of December 31, 2023. The purpose of the project was to develop and launch the ‘Túpac Katari’ communications satellite. The satellite, which owes its name to an Aymara warrior and activist who fought the Spanish for indigenous independence in the 18th century, weighs 5.3 tons, 2.36 meters long and 2.1 meters wide. Its useful life is 15 years. It consists of 30 channels and operates on three frequencies. The first frequency is used to cover a large part of the Bolivian territory in internet services, the second frequency covers radio and communication broadcasts and the third frequency is planned to rent different types of transmissions to neighboring countries. The main customer of the Túpac Katari satellite services is the state-owned National Telecommunications Company (Entel), and the Government of Bolivia expected that the satellite would generate annual revenues of nearly $40 million for the provision of services to local and international firms. CGWIC was the contractor responsible for project implementation, which commenced in August 2011. Bolivia's first communications satellite, Tupac Katari (TKSAT-1), was officially launched on December 20, 2013 from the Xinchang satellite launch center. It was launched by the LM-3B/E launch vehicle developed by China Academy of Launch Vehicle Technology (CALT), and China Satellite Launch & Tracking Control General (CLTC) was responsible for the ground segment. On April 1, 2014, the satellite began commercial operations. The Túpac Katari satellite project was reportedly so successful that the Government of Bolivia decided that it wanted to build two more. Then, on on September 20, 2023 (via Supreme Decree No. 5026), the Government of Bolivia authorized Bolivia's Minister of Development Planning to sign an amendment to the December 23, 2010 loan agreement with CDB, which would replace the LIBOR-based interest rate with an alternative reference rate.