Project ID: 52224

China Eximbank provides $214 million preferential buyer’s credit for Fiber Optic Cable Network Project

Commitment amount

$ 237139798.5676982

Adjusted commitment amount

$ 237139798.57

Constant 2021 USD

Summary

Funding agency [Type]

Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]

Recipient

Guinea

Sector

Communications (Code: 220)

Flow type

Loan

Level of public liability

Central government debt

Infrastructure

Yes

Category

Intent

Mixed (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

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2014-01-01

Actual start

2015-07-25

Actual complete

2020-04-28

Description

In 2014, the Export-Import Bank of China and the Government of Guinea signed a $214.2 million preferential buyer’s credit (PBC) loan for the Fiber Optic Cable Network Project. The PBC financed 90% of the $238 million total cost of the project. The maturity and interest rate of this loan is unknown. However, it is known that a 7-year grace period was extended. The Government of Guinea uses the proceeds from the PBC to on-lend to a project company and special purpose vehicle (SPV) called Société de Gestion et d'Exploitation du Backbone National (SOGEB). As of June 30, 2020, SOGEB’s outstanding repayment obligations under the China Eximbank PBC agreement amounted to $172.09 million. By December 31, 2020, SOGEB’s outstanding repayment obligations under the China Eximbank PBC agreement amounted to $214 million. This project involved the construction of a 4352 km fiber optic cable network as well as data centers and network monitoring centers. The fiber optic cable network consisted of 14 major sections: Kankan-Nzérékoré, Kankan-Mandiana, Kouroussa-Siguiri-Kourémalé, Faranah-Kissidougou-Ouamou, Guéckedou-Bofossou-Macenta, Coyah-Forécariah-Farmoreyah, Boké-Gaoual-Koundara, Conakry-Boké, Conakry-Mamou, Mamou-Labé, Mamou-Kankan, Mamou-Faranah, Kolaboui-Kamsar and Tanéné-Fria. Huawei was the contractor responsible for implementation. A formal project commencement ceremony took place on December 22, 2014. However, construction did not begin until July 25, 2015. This project was completed on or around April 28, 2020.

Additional details

1. The Chinese project title is 国家光缆骨干网项目 or 的几内亚国家光缆骨干网项目 or 4000公里全国光纤骨干网 or 全国光纤骨干网. The French project title is Le Réseau Backbone National or Backbone National Project or Construction du Backbone National à Fibre Optique or La Fibre Optique du Backbone National. 2. Some sources indicate that the project involved the construction of a 4352 km fiber optic cable network, while others indicate that it involved the construction of a 3,987-fiber optic cable network.

Number of official sources

23

Number of total sources

32

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Details

Cofinanced

No

Direct receiving agencies [Type]

Government of Guinea [Government Agency]

Indirect receiving agencies [Type]

Société de Gestion et d'Exploitation du Backbone National (SOGEB) [Joint Venture/Special Purpose Vehicle]

Implementing agencies [Type]

Huawei Technologies Co., Ltd. [Private Sector]

Société de Gestion et d'Exploitation du Backbone National (SOGEB) [Joint Venture/Special Purpose Vehicle]

Loan Details

Grace period

7 years

Bilateral loan

Export buyer's credit

Investment project loan

Preferential Buyer's Credit