China Eximbank provides RMB 166 million government concessional loan for Phase 1 of Telecommunication Network Rehabilitation Project (Linked to Record ID#73378)

Project narrative

On April 11, 2006, China’s Ambassador to Eritrea and the Eritrean Minister of National Development signed an RMB 166 million concessional loan framework agreement for Phase 1 of the Telecommunication Network Rehabilitation Project. Then, on July 4, 2006, the Export-Import Bank of China (China Eximbank) and the Government of Eritrea signed an RMB 166 million government concessional loan (GCL) agreement to support this project. The proceeds of the GCL were used to finance a $21.45 million commercial contract with Zhongxing Telecommunications Equipment (ZTE) Corporation, which was signed in December 2005. This contract specified a construction period of one and a half years. The purpose of Phase 1 was to rehabilitate the country’s 200,000 fixed-line telecommunication network and implement a nationwide rollout of a wireless CDMA network. The project sought to increase the country’s telephone subscription rate from 1.5% to 6.5%. As of 2007, the project was under construction. The project achieved a 90% completion rate by July 2008. It was ultimately completed in June 2009 (Sohu; Ministry of Commerce of the People's Republic of China). On July 11, 2010, Li Ruogu, the President of China Eximbank visited Eritrea and received briefings on the implementation of the project by leaders of the Zhongxing Telecommunications Equipment Corporation and New Era Company. China Eximbank also financed Phase 2 of the Telecommunication Network Rehabilitation (see Record ID#73378).