Project ID: 39281

China commits a loan of $240 million to Ecuador to set up security service ECU 911 (linked to #35950, #69319, #59325, #59662)

Summary

Funding agency [Type]

China Development Bank (CDB) [State-owned Policy Bank]

Recipient

Ecuador

Sector

Government and civil society (Code: 150)

Flow type

Loan

Concessional

No

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-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

Implementation (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2012

Description

In 2012, the Chinese government provided a $240 million loan for the development of a 911-style emergency service called ECU 911. The project was likely funded through a 2011 China Development Bank loan of $2,052,360,403.03 (Project ID#35950), specifically through the $1.4 billion discretionary component (Tranche A; Project ID#69319) (See: “Resource-Backed Loans: Pitfalls and Potential”). The loan terms of Tranche A have been applied to this project.In early December 2011, the first phase of the ECU 911 project was completed. On 23 December 2011, the Ecuadorian government signed signed the National Public Safety Command and Control System Project Phase II (国家公共安全指挥与控制系统项目第二期) with China National Electronics Import and Export Corporation (CEIEC), which is a subsidiary of major defense contractor China Electronics Corporation (CEC) (See: “Ecuador signs 'National Public Safety Command and Control System Phase II”). On 26 December 2012, the 911 Security Control Command Center opened in Quito, Ecuador. Known as the ECU 911 Security Project (or Ecuador 911 Safety Emergency Response Command Center Project or National Public Safety Command and Control System Project), the surveillance system now has 16 regional response centers across the country, as well as a surveillance network with about 4,300 cameras, many of which were purchased from Huawei. Reports from Ecuador's Ministry of Finance show that ECU 911 spent approximately $700,000 in 2014 for equipment from Huawei. In 2015 and 2016, the Ecuadorian government spent a total of $900,000 for Huawei's LTE rapid response system. According to Ecuador's National Statistics and Census Institute (INEC), as of January 2018, the crime rate has dropped by 11.8 percent since implementing ECU 911 (See: “Feature: Chinese technology brings falling crime rate to Ecuador”).In 2015, the Chinese Embassy in Ecuador agreed to donate a total of $15.4 million worth of goods to ECU 911 (Project ID#59325).In 2016, China provided a $10 million non-repayable loan for the construction of a laboratory for ECU 911 at its headquarters in Quito (Project ID#59662).

Additional details

This project is funded through Tranche A of the 2011 $2 billion CDB loan (Project ID#69319). To ensure we are not double-counting Chinese OF, the transaction amount field is left empty. The amount is captured in Project ID#69319.

Number of official sources

3

Number of unofficial sources

11

Download the dataset

Details

Cofinanced

No

Receiving agencies [Type]

Government of the Republic of Ecuador [Government Agency]

Implementing agencies [Type]

China Electronics Corporation (CEC) [State-owned Company]; China National Electronics Import & Export Corporation (CEIEC) [State-owned Company]; Government of the Republic of Ecuador [Government Agency]; Huawei Technologies Co., Ltd. [Other]

Loan type

Non-Concessional

Maturity

8 years

Interest rate

7.159%

Grace period

2 years

Grant element

9.842899509%

Gurarantee provided

No

Insurance provided

No

Collateralized/securitized

Yes

Collateral

The loan was supported by the sale of 72,000 barrels of crude oil per day and/or fuel oil by PetroEcuador to PetroChina International