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Overview

China Eximbank provides preferential loan for $17 million contract supporting Phase 1 of the Togo Mobile Network Expansion Project (Linked to Record ID#64092)

Commitments (Constant USD, 2023)$35,763,517
Commitment Year•2004Country of Activity•TogoDirect Recipient Country of Incorporation•TogoSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2004
Start (actual)
Jan 1, 2004
End (actual)
Dec 31, 2006

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 ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned companies

  • Togocom

Implementing agencies

Government Agencies

  • Government of Togo

Joint Venture/Special Purpose Vehicles

  • Nokia Shanghai Bell Co., Ltd. (formerly known as Alcatel-Lucent Shanghai Bell Co., Ltd.)

State-owned companies

  • Togocom

Loan description

China Eximbank provides preferential loan for $17 million contract supporting Phase 1 of the Togo Mobile Network Expansion Project

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2004, the Export-Import Bank of China and the Government of Togo signed a preferential loan agreement for Phase 1 of the Togo Mobile Network Expansion Project. The proceeds of the loan were used to finance a EUR 13 million ($17 million) commercial contract between Togo Cellulaire and Alcatel-Lucent Shanghai Bell Co, Ltd. Under the terms of the commercial contract, Alcatel-Lucent Shanghai Bell Co, Ltd. agreed to supply Togo Cellulaire with its GSM/GPRS/EDGE solution, which included base transceiver stations, base station controllers, mobile services switching centers, and microwave transmission equipment. The purpose of the project was to increase Togo Cellulaire's network capacity and expand its network coverage to remote parts of Togo, as well as allow Togo Cellulaire to offer Internet access and personal ring back tone services to its customers. Alcatel-Lucent Shanghai Bell Co, Ltd. was the contractor responsible for implementation. The project was completed in 2006. It reportedly added an additional 100,000 connections to Togo Cellulaire's network capacity.

Staff comments

1. This project is also known as Phase 1 of the Telecom Network Expansion Project or the GSM/GPRS Expansion Project. The Chinese project title is 多哥移动一期扩容项目. 2. For the time being, AidData has identified 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 have been the primary borrower or secondary borrower (through an on-lending arrangement with the Government of Togo). This issue merits further investigation. 3. Sources are inconsistent regarding the commitment year; some indicate 2005, while others point to 2004. This issue warrants further investigation. 4. The face value of this loan is not reported by any of the underlying sources. AidData estimates that the face value by taking 100% of the value of the underlying commercial contract, as this project was likely financed with a Government Concessional Loan (GCL) from China Eximbank. 5. Togo Cellulaire (also known as Togocel or Togo Mobile) was a wholly state-owned company and subsidiary of Togo Telecom. At the time of the project, its network covered 90% of the country and had a portfolio of 300,000 subscribers. 6. China Eximbank also financed Phase 2 of the Togo Mobile Network Expansion Project in 2004 (as captured via Record ID#64092).