China Eximbank provides RMB 420 million loan for Phase 2 of National Transmission Backbone and e-Government Infrastructure Project (Linked to Project ID#53401 and Project ID#59750)

On January 13, 2009, the Chinese Government and the Government of Uganda signed a preferential loan framework agreement for Phase 2 of the National Transmission Backbone and e-Government Infrastructure Project. Then, on February 23, 2009, China Eximbank and the Government of Uganda signed a government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO. (2009) 8 TOTAL NO. 259] worth RMB 420,000,000 ($61,421,468.27) for Phase 2 of the National Transmission Backbone and e-Government Infrastructure Project. The borrowing terms of the GCL were as follows: a 20 year maturity, a 5 year grace period, a 2% interest rate, a 0% default (penalty) interest rate, a 0.75% commitment fee, and a 1% management fee. According to the Government of Uganda’s Aid Management Platform (AMP), this loan achieved a 99.2% disbursement rate, with China Eximbank making six loan disbursements (worth $60,934,878.18) between 2009 and 2013: a $18,346,305.05 disbursement on May 11, 2009, a $12,201,149.01 disbursement on July 28, 2010, a $6,120,200.86 disbursement on August 5, 2010, a $10,873,331.18 disbursement on September 29, 2010, a $1,182,980.94 disbursement on December 20, 2011, and a $12,210,911.14 disbursement on September 6, 2013. According to the Uganda Ministry of Finance, Planning, and Economic Development's Report on Public Debt, Grants, Guarantees and Other Financial Liabilities for Financial Year 2021/2022, as of December 31, 2021, total loan disbursements amounted to $63,755,746.99 and the loan’s amount outstanding (including arrears) was $29,752,681.93. The proceeds of the GCL were to be used by the borrower to finance a commercial (turnkey) contract [ID#00F8000610060A and 0008000610060A] between the Government of Uganda’s Ministry of Information and Communication Technology and Huawei Technologies Co., Ltd., which was signed on October 6, 2006. The NBI/EGI project is composed of two components: the National Data Transmission Infrastructure (NBI) and the e-Government Infrastructure (EGI). The purpose of NBI was to connect all districts to National Backbone Infrastructure through the laying of fiber optic cable to all major towns and the use of alternative technologies like wireless technologies to cover to the rest of the country, and to provide low cost bandwidth throughout the country through the building of the NBI. The purpose of EGI was to connect all government ministries and some government departments into an e-government network and to provide services like videoconferencing, data and voice communication. It involved the establishment of a Primary Data Centre for Government at Statistics House; the establishment of the Network Operations Centre in Statistics House that will monitor the entire infrastructure; and an effort to connect all government ministries and some government departments through the laying of fiber optic cable onto the e-Government Network. Huawei was the contractor responsible for project implementation. Phase 2 involved the laying of 368.39 kilometers of fiber optic cable to connect the towns of Busia, Malaba, Tororo, Mbale, Kumi, Soroti, Lira, Gulu, Elegu (at the border with Southern Sudan), Masindi, Nakasongola, Luwero, Kyenjojo, Kasese, Fort Portal, Bushenyi and Mbarara. The project also achieved the following: (1) construction of a Primary Data Centre in Statistics House; (2) installation of backup equipment in all 27 government ministries and departments installed during Phase I; (3) repairs to damages caused on Phase I; (4) installation of 17 Optical Switching Transmission sites in the towns mentioned above, that will be utilized to extend eGovernment Services to Local Governments and the Population in these areas; and (5) installation of a centralized email and Office Automation Platform that will be piloted in State House, Ministry of ICT and NITA before rollout to all government ministries and agencies. Huawei Technologies Co., Ltd. was the contractor responsible for project implementation. Phase 2 was completed on October 7, 2011.

Additional details

1. The China Eximbank loan (GCL) agreement can be accessed in its entirety via https://www.dropbox.com/s/2rb6sxfi6a551tr/Uganda%20National%20Transmission%20Backbone%20and%20e-Government%20Infrastructure%20Project%20%28Phase%202%29.pdf?dl=0. 2. The Government of Uganda’s agreement code for the GCL agreement is L-0575. The system identification number in the Government of Uganda’s Aid Management Platform (AMP) is 872992768. 3. One official source indicates that Phase 2 actually involved the laying of 1400.734 kilometers of fiber optic cable connecting Busia, Tororo, Mbale, Malaba, Kumi, Soroti, Lira, Gulu, Elegu, Masindi, Kyenjojo, Fort Portal, Kasese, Bushenyi and Mbarara. 4. Phase 1 of the National Transmission Backbone and e-Government Infrastructure Project is recorded via Project ID#53401. Phase 3 of the National Transmission Backbone and e-Government Infrastructure Project is recorded via Project ID#59750. Phase 4 of the project was funded by the World Bank and the Government of Uganda and it focused on missing links in the NBI and last mile connectivity. 5. This project is also known as Phase 2 of National Backbone Infrastructure Project and Phase II of the National Data Transmission Backbone Infrastructure and e-Government Infrastructure Project (NBI/EGI). The Chinese project title is 乌干达电子政务和国家骨干网项目 (or 国家骨干网). 6. One source refers to the face value of the China Eximbank loan as RMB 405,996,595. AidData relies on the face value of the loan (RMB 420,000,000) as recorded in the actual GCL agreement [CHINA EXIMBANK GCL NO. (2009) 8 TOTAL NO. 259].

Number of official sources

23

Number of total sources

32