China Eximbank provides RMB 499 million government concessional loan for Digital TV Transformation Project

Project narrative

On November 8, 2021, China Eximbank and the Government of Papua New Guinea signed an RMB 499 million preferential loan framework agreement for the Digital TV Transformation Project. The parties subsequently signed a RMB 499 million government concessional loan agreement for the Digital TV Transformation Project in 2022. The estimated borrowing terms of the GCL include a 19.6666-year maturity, a 5.1666 year-grace period, and a 2% interest rate. The borrower is expected to use the proceeds of the GCL to finance 100% of the cost of an RMB 499 million ($69.28 million) commercial contract between China State Construction Engineering Corporation PNG Limited and the National Broadcasting Corporation (NBC) of Papua New Guinea, which was signed on March 27, 2020. The purpose of this project is to fully upgrade PNG's existing analog signal TV system, and transform it into an ‘end-to-end’ digital TV system covering its major cities in 10 provinces with a full-link system that starts from program production and ends with user viewing. It will seek to provide high-quality digital TV services for local people, consolidate the foundation of digital information construction in PNG, and accelerate the pace of modernization and application of digital technology. The project will also involve establishing the main NBC transmission station 25 kilowatt to power the MW transmission signal in the country and it will be stationed in Lae, Morobe Province. China State Construction Engineering Corporation PNG Limited is the contractor responsible for implementation. Project implementation commenced on May 23, 2022. On October 7, 2024, the project achieved a milestone with the handover of an Outside Broadcast (OB) Van to the National Broadcasting Corporation (NBC). The handover ceremony was attended by China's Ambassador to PNG, Yang Xioaguang, PNG Minister for ICT, Timothy Masiu and NBC Managing Director Kora Nou. The OB van was equipped with cutting-edge broadcasting technology designed to significantly improve NBC's capacity to cover live events, especially those that require on-the-ground and remote coverage. The project was originally expected to reach completion within 18 months (November 23, 2023).