China Eximbank provides CFA 20 billion loan for Phase 2 of the Togo Mobile Network Expansion Project (Linked to Project ID#64098)

In 2006, the Export-Import Bank of China Eximbank and the Government of Togo signed a preferential loan agreement worth CFA 20 billion for Phase 2 of the Togo Mobile Network Expansion Project. The loan carried the following estimated borrowing terms: a 25-year maturity, a 15-year grace period, and a 2% interest rate. The proceeds of the loan were used to finance a commercial contract between Togo Cellulaire and Chinese company Alcatel Shanghai Bell Co, Ltd.. Phase 2 sought to improve Togo Cellulaire's mobile coverage in the city of Lomé, north Togo, and remote areas of the country, improving communications in Togo and helping meet the growing demand for mobile communication from the Togolese people. On September 10, 2008, a project completion ceremony was held and attended by dignitaries from China and Togo, including the Chinese Ambassador to Togo, Yang Min, and the Togolese ministers of Cooperation, Finance, and Telecommunications.

Additional details

1. This project is also known as Phase 2 of the Telecom Network Expansion Project. The Chinese project title is 多哥移动二期扩容项目 or 多哥移动公司(多哥移动)二期项目. 2. For the time being, AidData identifies the Government of Togo as the borrower. However, there are some indications that Togo Cellulaire (Togocel), which was wholly owned by the Government of Togo until 2019 and is now co-owned by Axian Group & Emerging Capital (51% equity stake) and the Government of Togo (49% equity stake), may be been the primary borrower or secondary borrower (through an on-lending arrangement with the Government of Togo). This issue merits further investigation. 3. Togo Cellulaire (also known as Togocel or Togo Mobile) was a wholly state-owned company and subsidiary of Togo Telecom. At the time, its network covered 90% of the country and had a portfolio of 300,000 subscribers. 4. China Eximbank also financed Phase 1 of the Togo Mobile Network Expansion Project in 2004 (as captured via Project ID#64098). 5. The estimated borrowing terms of the loan are drawn from the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 and https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0

Number of official sources

4

Number of total sources

8