China Eximbank provides $21 million preferential buyer’s credit for Telecommunications Accessibility, Quality and Control Project (Linked to Project ID#49148)

On November 10, 2015, China Eximbank and the Government of Mongolia signed a general loan agreement regarding the utilization of a $1 billion preferential buyer's credit (PBC) for various projects (see Umbrella Project I#49148). Under the terms of the general loan agreement, all subsidiary (individual) loan agreements for specific projects carry identical borrowing terms: a 20 year maturity, a 7 year grace period, a 2% interest rate, a 0% management fee, and a 0.25% commitment fee. Then, in 2018, China Eximbank and the Government of Mongolia signed a subsidiary (PBC) agreement worth $21 million for the Telecommunications Accessibility, Quality and Control Project. The proceeds of the PBC were to be used by the borrower to partially finance 95% of the cost of a $22.1 million commercial contract with an unknown firm. The purpose of this project is to (a) extend a state-owned fiber optic cable network to connect 15 border crossings and 28 soums, and (b) install national radio communication equipment. Project implementation was originally expected to take place between 2018 and 2021. However, as of January 2022, AidData had not yet identified any evidence of project implementation.

Additional details

1. This project is also known as the National Backbone Network and Strengthening National Radio Frequency Monitoring, Consumer Protection Project. The Mongolian project title is Харилцаа холбооны салбарын хүртээмж, чанар, хяналтыг сайжруулах төсөл or Харилцаа холбооны салбарын хїртээмж, чанар, хяналтыг сайжруулах тєсєл. The Chinese project title is 改善通信行业覆盖率、质量和监督项目. 2. The China Eximbank loan for this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.

Number of official sources

6

Number of total sources

8