ICBC provides $100 million loan for Phase 2 (Part 2) of Myanmar Communication Infrastructure Construction Project (Linked to Record ID#64443 and #63327)

Project narrative

In August 2018, the Hong Kong Branch of ICBC and Myanmar Fiber Optic Communication Network Co., Ltd. (MFOCN or 缅甸光纤通信网络有限公司) — a project company and subsidiary of HyalRoute Communication Group Ltd. (HyalRoute) — signed a $100 million loan agreement for Phase 2 (Part 2) of Myanmar Communication Infrastructure Construction Project. The loan carries a 5.5 year maturity. The other borrowing terms of the loan are unknown. The borrower purchased credit insurance from the World Bank's Multilateral Investment Guarantee Agency (MIGA). As an additional credit enhancement, MFOCN pledged fiber optic network assets (worth $150 million) as sources of collateral. In July 2015 an Initial Environmental Examination was conducted for the project and determined only an Environmental Management Plan would be necessary and not a full ESIA. In addition an Environment, Health and Security Management System was developed by HyalRoute to be implemented in the project. The purpose of the Myanmar Communications Infrastructure Construction Project is to install a 62,000 km national fiber optic cable (FOC) network and 1,000 telecom towers over 3 phases. Phase 2 involved the construction of a 14,599 km of fiber optic cable (FOC) network. Part 2 of Phase 2 involved (a) the construction and maintenance of 4,000 km of underground fiber optic cable (FOC) backbone network (including 3,300 km of direct-buried backbone and 700 km of urban communication ducts); (b) the construction of a 32,000 km fiber-optic network to be deployed between 2012 – 2023; and (c) construction of 1000 telecommunication towers. As of March 2018, MFOCN had completed a total of 23,218 km of FOC. Bank of China provided a loan for Part 1 of Phase 2 (captured in the linked Record ID#64443). A $130 million buyer’s credit loan agreement for Phase 1 (Part 2) of the Myanmar Communication Infrastructure Construction Project is captured via Record ID#63327.