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Overview

CDB provides $4.9 million loan for Osh-Irkeshtam Fiber Optic Network Construction Project (Linked to Record ID#70878, #70884, #70886, and #70889)

Commitments (Constant USD, 2023)$5,642,400
Commitment Year•2011Country 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
Feb 17, 2011
First repayment (originally scheduled)
Jul 2, 2011
Last repayment (originally scheduled)
Dec 30, 2016

Geospatial footprint

Map overview

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On February 17, 2011, China Development Bank (CDB) signed a $4,964,729.28 loan agreement with KyrgyzTelecom. This loan was intended to used for the Osh Irkeshtam Fiber Optic Network Construction Project. The loan carried the following terms: a 6-year maturity, a grace period of 1.5 years, and an interest rate of 6 month LIBOR + 1.8% margin (see "KyrgyzTelecom Financial Report 2015"). For more detailed location information: https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=40.5362%2C72.8034%3B39.6787%2C73.8988#map=9/40.0786/73.3503

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

State-owned companies

  • KyrgyzTelecom

Loan description

CDB provides $4.9 million loan for Osh-Irkeshtam Fiber Optic Network Construction Project

Grace period•0.5 yearsGrant element•19.6902%Interest rate (t₀)•2.2655%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•6 years

Narrative

Full Description

Project narrative

On February 17, 2011, China Development Bank (CDB) signed a $4,964,729.28 loan agreement with KyrgyzTelecom. This loan was intended to used for the Osh Irkeshtam Fiber Optic Network Construction Project. The loan carried the following borrowing terms: a 6-year maturity, a grace period of 1.5 years, and an interest rate of 6 month LIBOR plus a 1.8% margin. Its principal amount outstanding was $1,240,805.40 as of January 1, 2016.

Staff comments

1. Average 6 month LIBOR in 2011 was .464%. Therefore, the all-in interest rate was coded as .464% + 1.8%, or 2.264%. 2. Project status was coded as completion because all Chinese financing was disbursed. 3. The Russian project title is Проект «Цифровое будущее. Фаза «Региональные сети» «Строительство ВОЛС «Ош – Иркештам» (see pg.17 of "KyrgyzTelecom Financial Report 2015"). 4. According to KyrgyzTelecom Financial Report 2011, the $4,964,729.28 loan agreement signed on February 17, 2011 had a maturity of 12 years, a grace period of 1.5 years, and an interest rate of 6 month LIBOR + 1.8%. Only $4,963,221.45 had been received by December 31, 2011, however it reported an exchange rate difference profit of KGS 2,491,428,72 (see pg.35-36 of "KyrgyzTelecom Financial Report 2011"). According to KyrgyzTelecom Financial Report 2012, the $4,964,729.28 loan signed on February 17, 2011 had a maturity of 12 years, a grace period of 1.5 years, and an interest rate of 6 month LIBOR + 1.8%. $4,963,221.45 had been actually received. It reported an exchange rate difference loss of KGS 181,141.83 (see pg.22-23 of "KyrgyzTelecom Financial Report 2012"). However, according to KyrgyzTelecom Financial Report 2015, the $4,964,729.28 loan had a maturity of 6 years, a grace period of 0.5 years. 5. This project is linked to a $8.7 million CDB loan to KyrgyzTelecom in September 2009 for this project (see linked Record ID#70878), a $4 million CDB loan to KyrgyzTelecom in June 2011 (see linked Record ID#70884), a $2 million CDB loan to KyrgyzTelecom in September 2012 (see linked Record ID#70886), and a $2.2 million CDB loan to KyrgyzTelecom in October 2012 (see linked Record ID#70889).