China Eximbank provides $50 million USD preferential buyer’s credit for SOTELGUI Modernization and Expansion Project

In 2013, China Eximbank and the Government of Guinea signed a $50 million preferential buyer’s credit (PBC) agreement for the SOTELGUI Modernization and Expansion Project. The Government of Guinea, in turn, used the proceeds from the PBC to on-lend to Société des Télécommunications de Guinée (SOTELGUI or 是几内亚国家电信公司), a state-owned telecommunications company. The loan's estimated interest rate is 1.9327%. The other borrowing terms of the loan are unknown. According to various public debt reports published by the Guinean Ministry of Economy and Finance, the outstanding balance of the loan was USD $33.09 million as of June 30, 2020 and December 31, 2020. This project involved upgrading Guinea's telecommunications network from 2G to 4G. Huawei Technologies was the contractor responsible for implementation and it provided equipment in pursuit of this objectively. This project reportedly reached completion. However, the precise date of completion is unknown, and Guinea still did not have a 4G network as of early 2019.

Additional details

1. This project is also known as the 4G National Fiber Network Construction Project. The French project title is Modernisation et l’Expansion de la SOTELGUI or Modernisation des Réseaux de Sotelgui or Projet de réhabilitation de SOTELGUI or l'extension et la modernisation du réseau téléphonique en République de Guinée. The Chinese project title is 几内亚国家电信公司 or 电信网升级换代改造项目. 2. The World Bank’s Debt Reporting System (DRS) indicates that official sector loan commitments from China to the Government of Guinea (and/or entities backed by Government of Guinea repayment guarantees) in 2013 amounted to $387,038,766.50. This amount is roughly equivalent to the sum of the $334.65 million loan that China Eximbank issued for the 240MW Kaléta Hydroelectric Power Plant Construction Project (captured via Project ID#53003) in 2013 and the $50 million loan that China Eximbank issued for the SOTELGUI Modernization and Expansion Project (captured via Project ID#64324) in 2013. 3. The loan's estimated interest rate (1.9327%) is recorded in the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0

Number of official sources

8

Number of total sources

13