China Eximbank provides RMB 337.9 million government concessional loan for Telecommunications Network Modernization Project

Project narrative

On December 2, 2019, China Eximbank and the Government of Madagascar signed a preferential loan framework agreement for the Telecommunications Network Modernization Project. Then, on February 19, 2020, China Eximbank and the Government of Madagascar signed a RMB 337,998,700 (USD 42.7 million) government concessional loan (GCL) agreement for the project. The GCL carries the following borrowing terms: a 30 year maturity, a 5 year grace period, a 1.5% interest rate, a 0.25% management fee, and a 0.25% commitment fee. Madagascar’s Senate approved the loan agreement on June 5, 2020. This project involves the deployment of a fiber-optic network using Huawei’s 4G eLTE technology across public safety and other government agencies in the capital, Antananarivo. This project also involves the creation of data management centers and the installation of software and equipment, including video-conferencing technology and surveillance cameras, intended to improve public services and reduce the cost of internal telecommunications within public administration. Huawei Technologies is the contractor responsible for implementation.