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Overview

China Development Bank and China Eximbank pledge $68 million loan for the Digital TV Operation Project (Linked to Record ID#57618, 30706)

Commitments (Constant USD, 2023)$87,457,416
Commitment Year2010Country of ActivityTanzaniaDirect Recipient Country of IncorporationTanzaniaSectorCommunicationsFlow TypeLoan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2010
Start (actual)
Dec 31, 2012
End (actual)
Apr 30, 2015

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 ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)
  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Star Media (Tanzania) Co., Ltd.

Implementing agencies

Joint Venture/Special Purpose Vehicles

  • Star Media (Tanzania) Co., Ltd.

Private Sector

  • StarTimes

Loan desecription

China Development Bank and China Eximbank pledge $68 million loan for the Digital TV Operation Project (Linked to Record ID#57618, 30706)

Interest typeUnknown

Narrative

Full Description

Project narrative

In December 2010, China Eximbank and China Development Bank reportedly signed a financing agreement, in which it agreed to lend $68 million to Star Media (Tanzania) Limited -- a special purpose vehicle and joint venture of Tanzania Broadcasting Corporation (35% equity stake) and StarTimes (65% equity stake) -- for the Digital TV Operation Project. However, the financing arrangement reportedly encountered problems when the Government of Tanzania refused to provide a sovereign guarantee for the loan. The Digital TV Operation Project aimed to transition Tanzania from analogue to digital television. The switch began on December 31, 2012 and it was completed on April 30, 2015 when all analogue television transmitters were switched off. According to the StarTimes website, it brought digital TV to nine cities in Tanzania as of March 2013.

Staff comments

1. The Chinese project title is 坦桑尼亚数字电视运营项. 2. StarTime originally planned to invest $238 million in this project including $68 million from the Chinese banks, $34 million by selling 10,000 company shares, and another $136 million from its own profits. 3. This project appears to be related to a broader, Africa-wide project funded by the Chinese government to bring digital TV to 10,000 villages in Africa (captured via Record ID#57618).