China Eximbank provides RMB 99.4 million loan for Phase I of the Djibouti Telecommunication Network Expansion and Renovation Project (Linked to Record ID#59254)

Project narrative

In 2001, Chinese and Djibouti Government officials signed an agreement to initiate financial negotiations for Phase I of the Djibouti Telecommunication Network Expansion and Renovation Project. On March 25, 2001, the President of Djibouti Ismael Omar Guelleh visited ZTE during his visit in China. Then, on July 21, 2003, China Eximbank and Djibouti Télécom signed an RMB 99,444,000 (USD 12,082,110 or DJF 2.3 billion) government concessional loan (GCL) agreement for Phase I of the Djibouti Telecommunication Network Expansion and Renovation Project. The GCL carried the following borrowing terms: a 12-year maturity, 3-year grace period, and a 2% interest rate. As of 2005, the GCL had achieved a 69% disbursement rate ($8,345,594). Phase I involved the rehabilitation of the telecommunications networks and the implementation of a fiber optic cable loop system in Djibouti City and Balbala City. ZTE Corporation was the contractor responsible for project implementation. Djibouti Télécom supervised its work. The project was originally expected to be completed by the end of 2007. As of September 9, 2006, implementation was 'nearing completion'.