China Eximbank provides RMB 200 million government concessional loan for E-Government Project

On June 11, 2008, the Government of the People's Republic of China and the Government of the Republic of Vanuatu entered into a Framework Agreement on Provision of Government Interest-Subsidized Concessional Loans by China to the Republic of Vanuatu. Then, on the same day (June 11, 2008), China Eximbank and the Government of the Republic of Vanuatu (represented by the Ministry of Finance and Economic Management) signed an RMB 200,000,000 government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO. 2008 (12) TOTAL NO. 231] for the E-Government Project. The Parliament of Vanuatu ratified the GCL agreement on April 20, 2009. The borrowing terms of the GCL were as follows: a 2% interest rate, a 0% default (penalty) interest rate, a 20-year maturity, a 5-year grace period, a 1% management fee, and a 0.75% commitment fee. The borrower was to use the proceeds of the GCL to finance a commercial contract (No. 005480805090A) between the Ministry of Infrastructure and Utilities of the Republic of Vanuatu and Huawei Technologies Co., Ltd, which was signed on May 11, 2008. The purpose of the project was to create a Government Data Centre and a Government Broadband Network (GBN) by installing a 100 km fiber-optic network and fixed wireless network that connects approximately 100 government offices across the country. This project also the creation of SDH microwave and VSAT transmission networks in order to connect Port Vila with the country’s provincial capitals (Lakatora, Saratamata, Luganville, Port Villa, Isangel, and Sola). Huawei Technologies Co., Ltd was the contractor responsible for project implementation. A groundbreaking ceremony was scheduled for July 2009. However, the precise project implementation start date is unknown. The project commenced at some point in 2009 and it was officially completed on July 20, 2012.

Additional details

1. This project is also known as the i-Government Project and the Government Broadband Network (GBN) Project. The Chinese project title is 电子政务 or 瓦努阿图电子政务项目. 2. The Chinese Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020 identifies this project as being financed with a China Eximbank loan worth $29 million. AidData relies on the face value of the loan (RMB 200,000,000) that is identified in the actual loan agreement [CHINA EXIMBANK GCL NO. 2008 (12) TOTAL NO. 231] between China Eximbank and the Government of the Republic of Vanuatu. 3. The loan agreement can be accessed in its entirety via https://www.documentcloud.org/documents/20488917-vut_2008_449.

Number of official sources

20

Number of total sources

29