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

Project narrative

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 loan carries the following borrowing terms: a 20-year maturity, a 9-year grace period, and a 2% interest rate. The Government of Guinea used 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). The loan's principal amount outstanding was $172.09 million as of March 31, 2020, $172.09 million as of June 30, 2020, $214 million as of December 31, 2020, $214 million as of June 30, 2022, and $214 million as of September 30, 2022. The 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.