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

Project narrative

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 Record 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 apparently collateralized against project (telecommunication infrastructure) revenues deposited in an escrow account that is accessible to the lender. The borrower is expected to use the proceeds of the grant and loan to finance a commercial (EPC) contract with Huawei Technologies Co., Ltd. As of December 31, 2020, the loan had achieved a 31.5% disbursement rate. The Chinese Government also issued an RMB 170 million grant in 2019 for the ICT Modernization Project (as captured via Record 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.