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Overview

CDB provides $240 million loan to set up security service ECU 911 (Linked to Record ID#35950, #69319, #59325, #59662)

Commitment Year2012Country of ActivityEcuadorDirect Recipient Country of IncorporationEcuadorSectorGovernment And Civil SocietyFlow TypeLoan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2012
First repayment
Dec 31, 2013
Last repayment
Dec 30, 2019

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The project established a ECU 911 command center in Quito, Ecuador and placed surveillance systems across 16 regions in Ecuador. More detailed locational information can be found at https://www.openstreetmap.org/way/431493439

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 Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Government Agencies

  • Government of Ecuador

Implementing agencies

Government Agencies

  • Government of Ecuador

Private Sector

  • Huawei Technologies Co., Ltd.

State-owned companies

  • China Electronics Corporation (CEC)
  • China National Electronics Import & Export Corporation (CEIEC)

Accountable agencies

State-owned companies

  • EP Petroecuador

Collateral providers

State-owned companies

  • EP Petroecuador

Loan desecription

CDB provides $240 million loan to set up security service ECU 911

Grace period2 yearsGrant element9.8429%Interest rate (t₀)7.159%Interest typeFixed Interest RateMaturity8 years

Collateral

The CDB loan was secured with an Oil Sales and Purchase Contract between PetroEcuador and PetroChina. The Oil Sales and Purchase Contract required PetroEcuador to sell, over the entire validity period of the Facility Agreement, at least 72,000 barrels of crude oil per day and/or fuel oil to PetroChina. Petroecuador’s selling price to PetroChina was calculated based on the price of West Texas Intermediate (WTI) crude oil. The proceeds from the sale of oil were to be paid by PetroChina into a Proceeds Account, which was opened by PetroEcuador with CDB in China. Petroecuador was also required to maintain a minimum cash balance in the Proceeds Account, equivalent to 130% of the repayment (principal and interest) amount due to be paid in that 3-month interest period.

Narrative

Full Description

Project narrative

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 worth $2,052,360,403.03 (captured via Record ID#35950), specifically through the $1.4 billion discretionary component (Tranche A; Record ID#69319). The borrowing 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) . 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 . In 2015, the Chinese Embassy in Ecuador agreed to donate a total of $15.4 million worth of goods to ECU 911 (Record 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 (Record ID#59662).

Staff comments

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