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

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