China Eximbank provides RMB 623.7 million government concessional loan for the National Backbone Fiber Optic Cable Network and Communication Service Project
Commitment amount
$ 112065962.98050343
Adjusted commitment amount
$ 112065962.98
Constant 2021 USD
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Niger
Sector
Communications (Code: 220)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
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.
Additional details
1. The French project title is Projet de construction de Backbone national en fibre optique et Services de télécommunications. The Chinese project title is 尼日尔国际光缆骨干网 or 尼日尔国家骨干光缆网和通信服务项目 or 尼日尔国家骨干光缆建设和通信服务项目(Zinder-Guidiguir-Goure-Goudoumaria-MaineSoroa-Diffa-Nguimi-Dlakime Border中继段. 2. The borrowing terms of the loan have been disclosed by the Government of Niger (see https://tresor.ne/wp-content/uploads/2022/08/RAPPORT-ANNUEL-2021_VF-1.pdf).
Number of official sources
12
Number of total sources
21
Details
Cofinanced
No
Direct receiving agencies [Type]
Government of Niger [Government Agency]
Implementing agencies [Type]
China Communications Construction Co., Ltd. (CCCC) [State-owned Company]
Government of Niger [Government Agency]
Société Nigérienne des Télécommunications or Nigerien Telecommunications Society (SONITEL) [State-owned Company]
Loan Details
Maturity
20 years
Interest rate
1.0%
Grace period
7 years
Grant element (OECD Grant-Equiv)
59.3636%