Active Development AidData Chinese Aid

Bank of China contributes to EUR 128 million syndicated loan to Telekom Srbija for Phase 2 of the Fixed Network ALL-IP Modernization Project (Linked to Record ID#67014)

€64M EUR

Funder	Bank of China (BOC)
Recipient Organization	Telecom Serbia
Country	Serbia
Start Date	May 12, 2017
End Date	Jan 15, 2031
Duration	4,996 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`100775`

Grant Description

China Eximbank and BOC contribution to EUR 128 million syndicated loan to Phase 2 of the Fixed Network ALL-IP Modernization Project On June 18, 2016, China Eximbank (CEXIM) and the Government of the Republic of Serbia’s Ministry of Finance signed a Memorandum of Understanding (MOU) regarding Phase 2 of the Fixed Network ALL-IP Modernization Project.

During the same month, Telekom Srbija (Telekom Srbija a.d.

Beograd) — a Serbian state-owned telecommunications company headquartered in Belgrade — signed a framework agreement with Huawei as the contractor of the project.

Then, on May 12, 2017, CEXIM and Bank of China (BoC) signed an EUR 128 million EUR syndicated loan agreement with Telekom Srbija for Phase 2 of the Fixed Network ALL-IP Modernization Project. The loan carries a 10-year maturity. Its interest rate and grace period are unknown. As of December 31, 2019, the principal amount outstanding under the loan was EUR 43 million.

The proceeds of the loan were used by the borrower to finance approximately 85% of the total cost of a commercial contract with Huawei worth approximately EUR 150 million.

The expected duration of the commercial contract is three and a half years from the date of signature of the first purchase order or financing contract, whichever is more recent.

The purpose of this project is to increase fast, stable and secure internet access through the laying of fiber optic cable. The project officially commenced on October 5, 2016.

By 2019, the project had resulted in the laying of 4,000 km of fiber optic cable and it was on track to provide fast, stable and secure internet access to more than 700,000 households by the end of 2019. As of October 2020, the second phase of the project was still undergoing implementation.

Record ID#67014 captures the estimated financial commitment of China Eximbank, while Record ID#100775 captures the estimated financial commitment of Bank of China.

📋 Staff Comments

This project is also known as the Telekom Srbija Fixed Network All-IP Modernization Project. The Serbian project title is Projekat All-IP transformacije. The Chinese project title is 固网现代化升级改造项目.
The loan that supported this project is not included in the Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020.
Telekom Srbija is Serbia's biggest fixed network operator with 70 percent of fixed network users.
The individual contributions of China Eximbank and Bank of China to the EUR 128 million syndicated loan are unknown. For the time being, AidData assumes equal contributions (EUR 64 million) across all 2 known members of the syndicate.

📚 Sources & References

China Outbound Investments Q2 2017
Dopis, 04-Odluka-o-usvajanju-Konsolidovanih-finansijskih-izvestaja-za-2018
TELEKOM SRBIJA_Izvestaj revizora i Pojedinacni statutarni
China’s Progress Report on Implementation of the 2030 Agenda for Sustainable Development
Telekom Srbija Fixed Network All-IP Modernization Project
Export-Import Bank Signs Loan Agreement for Serbian Telecom Company's Fixed Network Modernization and Upgrading Project
Export-Import Bank Signs Cooperation Agreement in Serbia
The Export-Import Bank signed a loan agreement for the modernization and upgrading project of the Serbian telecommunications company
中国进出口银行
Telekom Srbija_ Fixed Network Modernization on the Way
Konsolidovani godinji izvetaj o poslovanju za 2017
KI 2019 srp
PREDUZEĆE ZA TELEKOMUNIKACIJE “TELEKOM SRBIJA” a.d. BEOGRAD
Telekom Srbija Fixed Network All-IP Modernization Project
华为改造塞尔维亚固定网络项目正式启动
Huawei starts three-year fixed network transformation in Serbia
Prvi maj Cacak Cacak _ TELEKOM SRBIJA AND HUAWEI PRESENT ALL-IP TRANSFORMATION PROJECT
Telekom Srbija i Huawei predstavili projekat All-IP transformacije
MTS_ Optika na pragu polovine domaćinstava u Srbiji _ PC Press
INVESTICIJA TELEKOMA - _ALL IP_ TRANSFORMACIJA_ Ulaganje 600 miliona dinara u mrežu optičkih kablova - Dnevnik Juga
KRIK: Huawei had secret offshore contracts with people linked to Telekom Serbia
Huawei
Offshore Deals
And The Pandora Papers: 'How A Large Chinese Company Operates In Serbia'
SIGNIFICANT PROJECTS BACKED BY BOC
Chinese Tech Giant Huawei Had Secret Offshore Contracts With Men Linked to Serbian State Telecom Company
Surveying China’s Digital Silk Road in the Western Balkans
There Is a Solution to the Huawei Challenge
Huawei starts three-year fixed network transformation in Serbia
Telekom Srbija and Huawei launch €150mn project to develop landline network in Serbia
China Database 2017
China's Overseas Development Finance
Telekom Sbrija
Separate Financial Statements for the Year Ended 31 December 2018 (Pojedinačni finansijski izveštaji za godinu koja se završava 31. decembra 2018.)
Telekom Sbrija
Separate Financial Statements for the Year Ended 31 December 2019 (Pojedinačni finansijski izveštaji za godinu koja se završava 31. decembra 2019.)
Telekom Sbrija
Separate Financial Statements for the Year Ended 31 December 2021 (Pojedinačni finansijski izveštaji za godinu koja se završava 31. decembra 2021.)
Telekom Sbrija
Separate Financial Statements for the Year Ended 31 December 2023 (Pojedinačni finansijski izveštaji za godinu koja se završava 31. decembra 2023.) Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.