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Overview

China Eximbank provides government concessional loan for Phase 2 of Telecommunication Network Rehabilitation Project (Linked to Record ID#55516)

Commitments (Constant USD, 2023)$26,139,434
Commitment Year•2011Country of Activity•EritreaDirect Recipient Country of Incorporation•EritreaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 11, 2011
Start (actual)
Jan 1, 2012
End (actual)
Jan 1, 2014

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

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Eritrea

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.

State-owned companies

  • ZTE Corporation (formerly Zhongxing Telecommunication Equipment Corporation)

Loan description

China Eximbank provides government concessional loan for Phase 2 of Telecommunication Network Rehabilitation Project

Interest type•Unknown

Narrative

Full Description

Project narrative

On July 19, 2011, China Eximbank and the Government of Eritrea signed a preferential loan framework agreement for Phase 2 of the Telecommunication Network Rehabilitation Project. Then, on September 11, 2011, the Export-Import Bank of China (China Eximbank) and the Government of Eritrea signed a government concessional loan (GCL) agreement to support this project. The estimated face value of the loan is $23 million. The borrowing terms of this loan are unknown. This purpose of this project is to establish a national MPLS IP backbone, GSM mobile network, TSEiNET ISP network for the country’s state-owned telecoms operator (Eritel). Huawei Technologies Co., Ltd. and ZTE Corporation are the contractors responsible for implementation. The project commenced in 2012 and was completed in 2014. China Eximbank also financed Phase 1 of the Telecommunication Network Rehabilitation (as captured via Record ID#55516).

Staff comments

1. This project is also known as the Eritrea Telecom Phase II Project and the Eritrean Telecom Phase II Reconstruction Project. The Chinese project title is 厄立特里亚电信二期改造项目 or 厄特电信一期项目. 2. This loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. 3. The estimated face value of the loan is based on the following source: https://ojs.amhinternational.com/index.php/jsds/article/download/3267/2068/. However, given that the loan was issued as a GCL, it was almost certainly denominated in RMB. This issue warrants further investigation. 4. Official confirmation of the loan agreement can be found here: https://www.scribd.com/document/595885962/%E5%A2%83%E5%A4%96EPC%E9%A1%B9%E7%9B%AE%E8%9E%8D%E8%B5%8420190802