Nimbo Success Information Industry Co Ltd provides $10 million supplier’s credit for Chittagong Hill Tracts Digital Radio Link and Telephone Exchange Project

Project narrative

On June 20, 2004, Nimbo Success Information Industry Co Ltd — a Chinese state-owned company — issued a $10 million supplier’s credit to Bangladesh Telegraph & Telephone Board (BTTB) for the Chittagong Hill Tracts Digital Radio Link and Telephone Exchange Project. The supplier’s credit (loan) carried the following borrowing terms: a 15-year maturity, a 3-year grace period, and a 3.5% interest rate. The Government of Bangladesh provided a sovereign guarantee for the supplier’s credit on July 25, 2004. This supplier’s credit officially went into effect in May 2005. Bank of China's Ningbo Branch provided a counter-guarantee of $1.19 million. The purpose of the project was to install digital radio links and digital telephone exchanges. Nimbo Success Information Industry Co Ltd was the contractor responsible for project implementation. However, the project was plagued by delays and accusations of embezzlement. In October 2006, the Government of Bangladesh’s Economic Relations Division (ERD) reported that the contractor had not responded to calls to implement the project for two years. Nimbo Success Information Industry Co Ltd also faced accusations of embezzlement because it drew upon 5% of the contract value for the project as a ‘down payment’ but never carried out any work. According to the Government of Bangladesh’s Economic Relations Division (ERD), only $372,000 had been disbursed through this supplier’s credit and nothing had been repaid to the creditor as of June 30, 2018 and June 30, 2021.