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Overview

CDB provides $40 million loan to Uzbektelecom for 5G Telecommunications Infrastructure Project

Commitments (Constant USD, 2023)$41,519,500
Commitment Year•2019Country of Activity•UzbekistanDirect Recipient Country of Incorporation•UzbekistanSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 26, 2019
First repayment (originally scheduled)
Jan 23, 2021
Last repayment (originally scheduled)
Jul 24, 2024

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The network will be built in Khiva. More locational information can be found at: https://www.openstreetmap.org/relation/2097691#map=11/41.3704/60.3993

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

  • Uzbektelecom JSC

Loan desecription

CDB provides $40 million loan to Uzbektelecom for 5G Telecommunications Infrastructure Project

Grace period•1.5 yearsGrant element•9.0095%Interest rate (t₀)•6.40488%Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On or around July 26, 2019, China Development Bank signed a $40 million loan agreement with Uzbektelecom — a state-owned telecommunication nation company in Uzbekistan — for a 5G Telecommunications Infrastructure Project. The loan carries the following borrowing terms: a maturity of 5 years, a grace period of 1.5 years, and an interest rate of LIBOR plus a 4.2% margin. The purpose of the project was to develop 5G data transmission technology, fiber-optic broadband access and modern mobile communication networks.

Staff comments

1. One source puts the face value of the at $150 million. However, for the time being, AidData uses the more conservative estimate. 2. The Russian project title is модернизации и развитию телекоммуникационной инфраструктуры АК «Узбектелеком». 3. AidData has estimated the all-in interest rate by adding 4.2% to average 6-month LIBOR in July 2019 (2.206%). 4. On July 26, 2019, the Government of Uzbekistan announced plans to allow its Ministry of Information Technologies and Communications to conclude contracts with Huawei for the supply of technological equipment and software relevant to 5G development. This came after Huawei and the Ministry held discussions on July 11, 2019 regarding the possibility of launching a 5G network through one of Uzbekistan’s state-owned telecommunications operators. This decision coincided with the CDB announcement that it would allocate $40 million for telecommunications infrastructure projects with Uzbektelecom. Previously, in June 2019, the Uzbek Ministry for Development of Information Technologies and Communications signed an MoU with CITIC on the implementation of a smart city project that would involve a technological contribution from Huawei. 5. There are some indications that the $40 million CDB loan may have initially been issued to the National Bank of Foreign Economic Activity of the Republic of Uzbekistan (NBU) and then on-lent to Uzbektelecom. This issue warrants further investigation.