China Eximbank provides RMB 1.042 billion government concessional loan for Phase III of Info-Sarker Project (Linked to Record ID#34340)

Project narrative

On July 27, 2017, representatives from the Chinese Embassy and the Government of Bangladesh signed a preferential loan framework agreement regarding the Development of National ICT Infra-Network for Bangladesh Government (Info-Sarker) Phase III. Then, on October 27, 2017, China Eximbank and the Government of Bangladesh signed an RMB 1,042,830,000 ($156.56 million) government concessional loan (GCL) agreement for Phase III of the Info-Sarker Project. The GCL carried the following borrowing terms: a 2% interest rate, a 20-year maturity, a 5-year grace period, and a 0.2% commitment fee (service charge). The Government of Bangladesh provided $98.48 million of counterpart financing to support the $255.04 million project. According to the Government of Bangladesh’s Economic Relations Division (ERD), the GCL had achieved a disbursement rate of 20% (RMB 208,570,000 out of RMB 1,042,830,000) as of June 30, 2018, 91.1% (RMB 950,646,000 out of RMB 1,042,830,000) as of June 30, 2019, 95.8% (RMB 999,134,000 out of RMB 1,042,830,000) as of June 30, 2020, and 96.2% (RMB 1,003,623,000 out of RMB 1,042,830,000) as of June 30, 2021. No repayments on the GCL had been made as of June 30, 2019 or June 30, 2021. Phase III of the Info-Sarker Project sought to expand internet coverage by extending the fiber-optic broadband network — more specifically, the 1 Gbps ring-based Dense Wavelength Division Multiplexing (DWDM) network — by 19,500 km to 2,600 unions, 488 Upazillas, 64 districts, and 1,000 police stations. Info-Sarker-Phase 3 is an extension of the government ICT network to the lowest tier of administration i.e. Union from the existing network up to Upazilla (sub-district) through Info-Sarker-3. Info Sarkar Project under the ICT division (BCC) of the Bangladesh Government is a benchmark initiative of the Bangladesh Government to make digital Bangladesh by connecting all its people, organizations, and resources of all tiers through the Internet. China Railway International Group Company Limited (CRIG) was the contractor responsible for project implementation. The project was originally scheduled to run from January 1, 2017 to June 30, 2018. However, it ran behind schedule and its expected completion date was eventually pushed backed to June 30, 2021 — and then again to June 30, 2023. The project officially commenced on January 1, 2017. HDPE duct installation activities took place in Sylhet on August 5, 2017. Then, on April 11, 2018, an inauguration ceremony for the connectivity of 60 unions and 6 districts was held. HDPE duct installation activities took place in Cox's Bazar, Rajshahi, and Moulvibazar on February 8, 2019, March 16, 2019, and May 2, 2019, respectively. The project was ultimately completed on November 22, 2022. Bikarna Kumar Ghosh, the Director of Phase III of the Info-Sarker Project, predicted that more than 100 million people would ultimately benefit from internet connectivity after the completion of the project. He also predicted that the project would increase national GDP by 1%.