China Eximbank provides $127.5 million preferential buyer's credit for Phase 2 of E-Government Platform Project (Linked to Project ID#35635)

On February 16, 2011, China Eximbank and the Government of Ghana signed a $127,500,000 million preferential buyer's credit (PBC) agreement [CHINA EXIMBANK PBC NO. (2011) 6 TOTAL NO. (157)] for Phase 2 of the E-Government Platform Project. The agreement was approved by Ghana’s Parliament on March 23, 2011. The PBC (loan) carries the following borrowing terms: a 20 year maturity and a 5 year grace period. The loan’s (principal) amount outstanding was GHS 585,180,000 ($104,496,428) as of December 31, 2020 and GHS 560,900,000 ($107,865,384) as of December 31, 2021. According to the Government of Ghana’s Development Cooperation Management Information System (Gh-DCMIS), the loan (PBC) achieved a 100% disbursement rate, with China Eximbank making 12 loan disbursements (worth $127,500,018) between 2012 and 2016: a $21,437,752.35 disbursement on October 30, 2012, a $9,240,586.43 disbursement on November 30, 2012, a $7,625,619.56 disbursement on January 4, 2013, a $3,936,102.17 disbursement on May 30, 2013, a $3,920,928.08 disbursement on July 5, 2013, a $10,309,849.00 disbursement on May 6, 2014, a $21,451,082.45 disbursement on June 30, 2014, a $15,064,678.64 disbursement on November 15, 2014, a $15,798,656.93 disbursement on December 15, 2014, a $10,229,242.82 disbursement on April 17, 2015, a $4,806,379.41 disbursement on January 5, 2016, and a $3,679,140.16 disbursement on June 6, 2016. The project involved the extension of the Ghana National fiber optic backbone network by an additional 31 km; the deployment of 29 Worldwide Interoperability for Microwave Access (WiMAX) Base Transceiver Stations in the cities of Ho, Tema Accra, Cape Coast, Takoradi, Koforidua, Nkawkaw, Obuasi, Kumasi, Sunyani, Tarkwa, Tamale, Bolgatanga and Wa; the deployment of a primary data center in Accra; the provision of Voice over IP to approximately 100 Ministries, Departments and Agencies (MDAs); the provision of video conferencing facilities to two sites; and an extension to reach all 170 districts via leased links from any of the local ISPs or fixed and mobile operator. The project also involved the construction of 21 electronic Community Information Centers (e-CICs) in geographic areas lacking internet facilities — namely, Keta, Battor, Techiman-Krobo, Twifo Atti-Morkwa, Bodi, Effiduase, Glefe, Pantang, Amanfrom, Drobonso, Anum, Bekwai, Nandom, Welembelle, Sagnarigu, Pusiga, Gambaga, Kpetoe, Talensi, Ofoase, and Lassia-Tuolu. The ultimate purpose of the e-CICs is to expand civic engagement and access to technology in rural and remote Ghanaian localities. Huawei Technologies (GH) S.A. Ltd. — a local subsidiary of Huawei Technologies Ltd. -- was the contractor responsible for implementation. The originally expected project implementation start and end dates were February 16, 2011 and December 31, 2015, respectively. However, the project was ultimately completed on June 6, 2016. There are some indications that the China Eximbank loan for the Phase 2 of E-Government Platform Project may have financially underperformed vis-a-vis the original expectations of the lender. According to the World Bank’s International Development Statistics, the Government of Ghana had accumulated principal and interest arrears to one or more official sector Chinese creditors worth $908,337,346.70) in 2020 ($763,228,526.60 in principal arrears and $145,108,820.10 in interest arrears). Then, on December 19, 2022, the Government of Ghana announced a sovereign default. suspending debt service on its Eurobonds, its commercial loans, and most of its bilateral loans.

Additional details

1. This project goes by many names, including WiMax Network Upgrade Project, E-Government Platform Project, Enhanced Community Information Center Project, the Effiduase e-CIC Project, and Phase 2 of the E-Government Project. The Chinese project title is 合电子政务平台项目. 2. Some official sources indicate that China Eximbank lent $150 million for this project; however, these references likely refer to the value of the China Eximbank loans for Phase 1 (captured via Project ID#35635) and Phase 2 (captured via Project ID#58511). 3. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it records a $120 million commercial loan for this project. However, Government of Ghana sources (including the Government of Ghana’s Development Cooperation Management Information System) and Huawei (the contractor responsible for project implementation) consistently report that the face value of the preferential buyer’s credit for this project was $127.5 million. 4. The (principal) amounts outstanding are drawn from the Ghanaian Ministry of Finance’s Annual Public Debt Reports. These amounts are reported in GHS by the Ministry of Finance. AidData has estimated the USD amounts by applying the average GHS-to-USD exchange rate in 2020 (5.6-to-1) and the average GHS-to-USD exchange rate in 2021 (5.2-to-1).

Number of official sources

15

Number of total sources

16