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Overview

CDB provides $3.5 million loan for Digital Horizon Transformation Project (Linked to Record ID#70873)

Commitments (Constant USD, 2023)$5,815,476
Commitment Year•2007Country of Activity•Kyrgyz RepublicDirect Recipient Country of Incorporation•Kyrgyz RepublicSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 12, 2007
First repayment (originally scheduled)
Jul 1, 2008
Last repayment (originally scheduled)
Dec 12, 2012

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

  • China Development Bank (CDB)

Receiving agencies

State-owned companies

  • KyrgyzTelecom

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.

State-owned companies

  • KyrgyzTelecom

Loan description

CDB provides $3.5 million loan for Digital Horizon Transformation Project

Grace period•1.5 yearsGrant element•9.6901%Interest rate (t₀)•6.54375%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•6 years

Narrative

Full Description

Project narrative

On November 12, 2007, China Development Bank (CDB) signed a $3,500,000 loan agreement with KyrgyzTelecom for the Digital Horizon Transformation Project. The loan carried the following borrowing terms: a 6-year maturity period (final maturity date: December 12, 2013), a grace period of 1.5 years, and an interest rate of 6 month LIBOR + 1.8% margin. The loan was repaid before December 31, 2015. The Digital Horizon Transformation Project sought to upgrade the fixed network of KyrgyzTelecom from an analog network to a digital network. It provided for the parallel implementation of two projects: the modernization and development of the Bishkek telecommunication network and modernization and development of the regional telecommunication networks. It included the introduction of the expansion BGTS networks and an increase in KyrgyzTelecom's subscriber lines capacity to 250,000. Huawei Technologies provided equipment for the project. However, the precise equipment delivery dates are unknown.

Staff comments

1. AidData has estimated the all-in interest rate (6.632%) by adding 1.8% to average 6-month LIBOR in November 2007 (4.832%). 2. The Russian project title is Телекоммуникационный проект «Цифровое будущее». 3. Only $3,340,054.6 was actually received. This may be due to losses from the exchange rate difference, which was KGS 1,370,758.40. 4. According to the KyrgyzTelecom Financial Report 2007, the $3.5 million loan agreement signed on November 12, 2007 carried the following borrowing terms: a 9-year maturity, a grace period of 1 year and 1 month, and an interest rate of LIBOR + 1.8%. The KyrgyzTelecom Financial Report 2008 identified a 9-year maturity period, a grace period of 1 year and 1 month, and an interest rate of 6 month LIBOR + 1.8%. However, the KyrgyzTelecom Financial Report 2009 identifies a 6-year maturity, a grace period of 1.5 years, and an interest rate of 6 month LIBOR + 1.8%. 5. This project is linked to a $6.6 million loan from CDB for Digital Horizon Transformation Project in June 2006 (captured via Record ID#70873).