China Eximbank provides RMB 623.7 million government concessional loan for the National Backbone Fiber Optic Cable Network and Communication Service Project

Project narrative

On December 14, 2013, the Chinese Ambassador to Niger and Niger's Minister of State for Planning signed a preferential loan framework agreement for the National Backbone Optical Cable Network and Communication Service Project. Then, on January 2, 2014, the Government of Niger and China Eximbank signed an RMB 623.7 million government concessional loan (GCL) agreement for the project. The GCL carries the following borrowing terms: a 20 year maturity, a 7 year grace period, a 1% interest rate, and a 0.25% commitment fee The National Assembly of Niger passed a resolution, ratifying the loan agreement on October 29, 2014. Société Nigérienne des Télécommunications (SONITEL) — Niger’s state-run telecommunications operator — is responsible for loan repayment; however, it is not clear if it is the legal counterpart to the China Eximbank GCL or if the Government of Niger used the proceeds of the China Eximbank GCL to on-lend to SONITEL. The project involved the installation of more than 2,275 km of fiber optic cable along three sections (Niamey–Tillabéry, Zinder–Diffa and Agadez-Tahoua), 136 GSM and WCDMA terminals, CDMA and ADSL communication networks, and e-government services. China International Telecommunication Construction Corporation was the contractor responsible for implementation. Its ultimate objective was to increase national broadband coverage from 54% to 72%. Construction officially began on June 15, 2015 and the project was 95% complete as of November 2016. Construction ended in the first quarter of 2017. The project was officially completed and handed over the local authorities in May 2018.