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Overview

China Development Bank provides $18.3 million loan for Phase II of the Djibouti Telecommunication Network Expansion and Renovation Project (Linked to Record ID#421)

Commitments (Constant USD, 2023)$34,321,479
Commitment Year•2006Country of Activity•DjiboutiDirect Recipient Country of Incorporation•DjiboutiSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 24, 2006
End (actual)
Jun 20, 2007

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned companies

  • Djibouti Telecom

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.

State-owned companies

  • Djibouti Telecom

Guarantors

State-owned companies

  • ZTE Corporation (formerly Zhongxing Telecommunication Equipment Corporation)

Loan desecription

China Development Bank provides $18.3 million loan for Phase II of the Djibouti Telecommunication Network Expansion and Renovation Project

Interest type•Unknown

Narrative

Full Description

Project narrative

Between September 24, 2006 and September 26, 2006, during a Djibouti government delegation's trip to Shenzhen, representatives from China Development Bank (CDB) and Djibouti Télécom signed a $18,290,000 loan agreement for Phase II of the Djibouti Telecommunication Network Expansion and Renovation Project. The borrowing terms of the loan are unknown. Phase II of the Djibouti Telecommunication Network Expansion and Renovation Project reportedly involved the acquisition of IN \ NSS \ BSS \ NGN equipment, optimization of GSM signals, and and expansion of the country’s existing network capacity. Huawei was the contractor responsible for project implementation. The project was completed on June 20, 2007 and an official ribbon-cutting ceremony took place shortly thereafter on June 26, 2007.

Staff comments

1. This project is also known as the Djibouti Télécom Project or GSM Mobile Expansion Project. The Chinese project title is 吉布提电信公司GSM移动扩容项目. 2. Phase I, which was financed by China Eximbank, is captured via Record ID#421. 3. On September 8, 2006, ZTE Corporation issued an RMB 50 million joint liability loan guarantee for a term of 12 years. This guarantee was presumably in support of Phases I and II of this project, as it was Djibouti Telecom's most important and expensive venture at the time.