China Development Bank and China Eximbank loan $68 million USD to Star Media Tanzania for the Digital TV Operation Project (Linked to #57618, JV #30706)
Pledged amount
$ 94705431.63414435
Adjusted pledged amount
$ 94705431.63414435
Constant 2021 USD
Not recommended for aggregates
This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Tanzania
Sector
Communications (Code: 220)
Flow type
Loan
Level of public liability
Potential public sector debt
Infrastructure
Yes
Category
Project lifecycle
Description
In December 2010, Mwana Halisi published an article reporting that China Exim Bank and China Development Bank signed a financing agreement loaning $68 million USD to Star Media Tanzania Co. Ltd, a joint venture established by StarTimes, a Chinese firm, and Tanzania Broadcasting Corporation (TBC) (see project #30706 for JV details) for the Digital TV Operation Project (or 坦桑尼亚数字电视运营项). The financial breakdown and loan terms are unknown. Star Media originally planned to invest $238 million USD for this project including $68 million USD from the Chinese banks, $34 million USD by selling 10,000 company shares, and another $136 million USD from its own profits. However, Mwana Halisi claims that this financing deal was encountering problems with the Government of Tanzania. Apparently, a contract signed in November 2009 with the Government of Tanzania requires Star Media to obtain a sovereign guarantee before entering any loan agreements. In this case, the Government of Tanzania claimed Star Media was "financially incapable" and therefore "reluctant to sponsor the company to borrow money." Later reports only mention China Development Bank as financing this project, and the total investment figure rose to $265 million USD. The Digital TV Operation Project aimed to transition Tanzania from analogue to digital television. The switch began on 31 December 2012 and was completed by 30 April 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. This project follows the broader, Africa-wide project funded by the Chinese government to bring digital TV to 10,000 villages in Africa (umbrella project #57618).
Additional details
This project is based on mostly media articles so the evidence for Chinese commitment to financing is quite weak. It is unclear whether China Eximbank and/or China Development Bank ever really disbursed loan funds for this project.
Number of official sources
4
Number of total sources
12
Details
Cofinanced
Yes
Direct receiving agencies [Type]
Star Media (Tanzania) Co., Ltd. [Joint Venture/Special Purpose Vehicle]
Implementing agencies [Type]
StarTimes [Private Sector]
Star Media (Tanzania) Co., Ltd. [Joint Venture/Special Purpose Vehicle]