China Eximbank provides RMB 1.316 billion government concessional loan for ICT Modernization Project (Linked to Project ID#91949)

On June 26, 2019, the Chinese Ambassador to Chad, Li Jinjin, and Chad’s Minister of Economy and Development Planning, Issa Dubrani, signed a preferential loan framework agreement for the ICT Modernization Project. On the same day, China Eximbank and the Government of Chad signed an RMB 1.316 billion (CFA 111.4 billion or $189 million) government concessional loan (GCL) agreement for the ICT Modernization Project (as captured via Project ID#92012). The loan agreement was subsequently approved unanimously by Chad’s Parliament on April 30, 2020. The loan carries the following borrowing terms: a 20 year maturity, a 5 year grace period, and a 2% interest rate. It is secured by (i.e. collateralized against) a minimum cash balance in an escrow account. The borrower is expected to use the proceeds of the grant and loan to finance a commercial (EPC) contract with Huawei Technologies Co., Ltd. The Chinese Government also issued an RMB 170 million grant in 2019 for the ICT Modernization Project (as captured via Project ID#91949). The project has three components: the construction of a national data center; the construction of a 1200 km optic fiber cable network spanning the country from south to east (along the Doba-Koumra-Sarh-Kyabé-Am Timan-Abéché-Am Zoer-Guéréda-Iriba axis); and the construction of 50 km loop of fiber optic cables in the vicinity of N’Djamena with 200 2G/3G/4G sites. Huawei Technologies Co., Ltd. is the EPC contractor responsible for implementation. A groundbreaking ceremony took place on July 7, 2020. According to the Government of Chad's Aid Management Platform, the project's originally expected commencement date was May 1, 2020 and its originally expected completion date was October 31, 2021.

Additional details

1. This project is also known as the NTIC Project. It was one of five priority projects that the President of Chad, Idriss Deby, presented to Xi Jinping at the 2018 FOCAC summit in Beijing. The French project title is Project de Modernisation des TIC or Projet de la Modernisation de l’Industrie des Technologies de l’Information et de la Communication. 2. The World Bank’s Debtor Reporting System (DRS) records the face value of the loan as $190,555,774.50. 3. At least one source suggests that a preferential loan framework agreement rather than a GCL agreement was signed on June 26, 2019. This issue warrants further investigation. 4. The Aid Management Platform (AMP) system identification number for this project is 8728332467. See https://tchad.ampdev.net/aim/viewActivityPreview.do~activityId=3405 5. Indirect evidence of collateralization based on an escrow account arrangement can be found at https://www.dropbox.com/s/ujv7ubwrb1s072h/mahamat-atteib.pdf?dl=0. China Eximbank requires that it borrowers sign a 'repayment mechanism agreement' when such arrangements are required.

Number of official sources

4

Number of total sources

12