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Overview

China Eximbank provides RMB 1.7 billion concessional loan for National Broadband Infrastructure Upgrading Project

Commitments (Constant USD, 2023)$245,211,714
Commitment Year•2023Country of Activity•AngolaDirect Recipient Country of Incorporation•AngolaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 24, 2023
First repayment (originally scheduled)
May 30, 2026
Last repayment (originally scheduled)
Feb 5, 2044

Geospatial footprint

Map overview

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The project was a RMB 1.7 billion loan agreement that would support the National Broadband Project in Angola, installing 2,000km of terrestrial fiber optic cable in Angola, as well as a submarine fiber optic cable leading to Cabinda Province. More detailed locational information can be found at: https://www.openstreetmap.org/relation/195267 and https://www.openstreetmap.org/relation/422607

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 Angola

Implementing agencies

State-owned companies

  • Sinohydro Corporation Limited

Loan description

China Eximbank provides RMB 1.7 billion concessional loan for National Broadband Infrastructure Upgrading Project

Grace period•2.6 yearsGrant element•49.3408%Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•20.3 years

Narrative

Full Description

Project narrative

On January 11, 2023, China Eximbank and the Government of Angola signed a $248 million preferential loan framework agreement for the National Broadband Infrastructure Upgrading Project. Then, in October 2023, China Eximbank and the Government of Angola signed a ¥ 1,736,207,810.54 loan agreement for the National Broadband Infrastructure Upgrading Project. The borrowing terms included a 20.3-year maturity, a 2.6-year grace period, and a 2% interest rate. No source of collateral was pledged in support of the loan. It is also known that the borrower is expected to use the proceeds of the loan to finance a commercial contract with Sinohydro Corporation Ltd., which was signed in July 2022. The project involves the installation of a new 2,000-kilometer terrestrial fiber optic cable in Angola, the laying of a submarine fiber optic cable that connects to Cabinda Province, and the modernization of the country's core telecommunications network facilities. Upon completion, the project is expected to bring high-speed digital infrastructure to Angola’s remote areas. Sinohydro Corporation Ltd. is the EPC contractor responsible for project implementation.

Staff comments

1. The Chinese project title is 安哥拉国家级ICT基础设施项目 or 安哥拉国家宽带项目. The Portuguese project title is Projecto de Implementação da Rede Nacional de Banda Larga. 2. The ¥1,736,207,810.54 face value of the loan is identified in Presidential Order No. 254/23 of 25th October. The commitment date of this loan is also estimated based on the issuance date of this order. 3. The borrowing terms of the loan are drawn from the World Bank's Debtor Reporting System. See https://www.dropbox.com/scl/fi/rqvqm4e62wf56yq8w14xi/Official-sector-PRC-borrowings-and-borrowings-terms-for-Angola-IDS-December-2024.xlsx?rlkey=xlk5h50qn2f7ho3pg7km18948&dl=0