Overview

CDB provides $4 million loan for Osh-Irkeshtam Fiber Optic Network Construction Project (Linked to Record ID#70878, #70881, #70886, and #70889)

Commitments (Constant USD, 2023)$4,545,989

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: Jun 27, 2011

First repayment (originally scheduled): Jul 2, 2011

Last repayment (originally scheduled): Dec 30, 2016

Geospatial footprint

Map overview

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On June 27, 2011, China Development Bank (CDB) signed a $4,000,000 loan agreement with KyrgyzTelecom. This loan was intended to be used for the Osh Irkeshtam Fiber Optic Network Construction Project. The loan carried the following terms: a 6-year maturity, a grace period of 0.5 years, and an interest rate of 6 month LIBOR + 2.5% margin (see pg.18 of "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 desecription

CDB provides $4 million loan for Osh-Irkeshtam Fiber Optic Network Construction Project

Grace period•0.5 yearsGrant element•18.0163%Interest rate (t₀)•2.90275%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•6 years

Narrative

Full Description

Project narrative

On June 27, 2011, China Development Bank (CDB) signed a $4,000,000 loan agreement with KyrgyzTelecom. This loan was intended to be used for the Osh Irkeshtam Fiber Optic Network Construction Project. The loan carried the following terms: a 6-year maturity, a grace period of 0.5 years, and an interest rate of 6 month LIBOR + 2.5% margin. 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 $4.9 million CDB loan to KyrgyzTelecom in February 2011 for this project (see linked Record ID#70881), 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).

Staff comments

The 6 month LIBOR in 2011 was .398%. Therefore, the interest rate was coded as .398% + 2.5%, or 2.898%. Project status was coded as completion because all Chinese financing was disbursed; as of January 1, 2016, KyrgyzTelecom had a remaining debt of $2,174,756.6. The Russian project title is Проект «Цифровое будущее. Фаза «Региональные сети» «Строительство ВОЛС «Ош – Иркештам». According to KyrgyzTelecom Financial Report 2011, the $4 million loan was signed on June 27, 2011 had a maturity period of 12 years, a grace period of 1.5 years, and an interest rate of 6 month LIBOR + 2.5%. $1,358,520.44 had been received by December 31, 2011. According to KyrgyzTelecom Financial Report 2012, the $4 million loan was signed on June 27, 2011 had a maturity period of 12 years, a grace period of 1.5 years, and an interest rate of 6 month LIBOR + 1.8%. $1,358,520.44 had been actually received, and throughout 2012, it appears that a combined $2,985,409.57 was retrieved.