Active Development AidData Chinese Aid

China Eximbank provides RMB 1.049 billion government concessional loan for National Data Transmission Backbone Infrastructure/E-Government Infrastructure Project Phase V (Linked to Record ID#53401, 59750, 53402)

¥1.05M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Uganda
Country	Uganda
Start Date	Dec 08, 2023
End Date	Apr 02, 2030
Duration	2,307 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`106497`

Grant Description

China Eximbank provides RMB 1.049 billion government concessional loan for National Data Transmission Backbone Infrastructure/E-Government Infrastructure Project Phase V On March 10, 2023, the Chinese Government and the Government of Uganda signed a preferential loan framework agreement for the National Data Transmission Backbone Infrastructure/E-Government Infrastructure Project Phase V.

Then, on December 8, 2023, the Government of Uganda and China Eximbank signed an RMB 1,049,999,568.01 ($146,713,555) government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO.(2023) 05 TOTAL NO.(773)] for the National Data Transmission Backbone Infrastructure/E-Government Infrastructure Project Phase V.

The loan agreement officially went into effect on September 18, 2024 (after all conditions set out in Article 9.1 of the loan agreement had been met).

📋 Loan / Grant Terms

💰 Loan Amountcarries the following borrowing terms: a 20-year maturity

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

As a source of collateral, the project's end-user -- the National Information and Technology Authority - Uganda (NITA-U), an autonomous government parastatal under Uganda's Ministry of ICT -- agreed to deposit all income generated by the project into a UGX sales collection account (at Stanbic Bank Uganda Limited), pursuant to a Repayment Mechanism Arrangement Agreement and a Sales Collection Arrangement Agreement.

The Government of Uganda also agreed to maintain a minimum cash balance of $3 million in a repayment reserve account during the loan's grace period and deposit an additional $10 million in the same repayment reserve account before the loan’s first repayment date and for the full duration of the loan’s repayment period.

The borrower is expected to use the proceeds of the loan to finance a commercial contract [NITA-U/SUPLS/21-22/0001] between Uganda's National Information Technology Authority and China International Telecommunication Construction Corporation, which was signed on April 22, 2022. As of December 2024, the loan had achieved a 30.1% disbursement rate ($44,217,335 out of $146,713,555).

The project has four components. The first component involves the construction of a 3,604 km backbone network and 51 backbone transmission sites.

The second component will seek to cover the last mile of 2,24O km, with 800 site connections meeting the last mile network service demands of government sites.

The third component involves the construction of a new data center in Namanve with a capacity of 18O cabinets and corresponding 52 data center cabinets.

The fourth component will cover construction and management system maintenance, project management services and warehousing of the project logistics. China International Telecommunication Construction Corporation is the contractor responsible for implementation.

On September 18, 2024, the lender issued a Notice of Effectiveness Certificate for the project, marking its effective commencement date.

📋 Staff Comments

The Chinese project title is 乌干达通信骨干网和电子政务网五期项目.
China Eximbank also financed previous phases of the same project (as captured via Record ID#53401, 59750, 53402).
The Uganda Aid Management Platform System ID Number is 8729918820192.
The loan agreement can be accessed via https://www.dropbox.com/scl/fi/ym0w296beel95pby32opy/Uganda-National-Transmission-Backbone-and-e-Government-Infrastructure-Project-Phase-5-2.pdf?rlkey=bs4vanb4bati2uva0o6pg5z4j&dl=0.
The repayment mechanism arrangement agreement can be accessed via https://www.dropbox.com/scl/fi/dxtwg7l1ipeyu2vf0i8ar/Clearance-for-NBI-5-Repayment-Mechanism-Agreement.pdf?rlkey=8bhkso3m17gbe6wdfsl4fzjky&dl=06. The sales collection arrangement agreement can be accessed via https://www.dropbox.com/scl/fi/iczad68pvv0l3d00kpbsw/Signed-Sales-Collection-Arrangement-Agreement-for-NBI-Phase-5.pdf?rlkey=i8z44y7dr8sq891ehcvtm219z&dl=0.
The preferential loan framework agreement can be accessed via https://www.dropbox.com/scl/fi/gfxm2xpbh7pslzbzklfdi/Framework-Agreement-for-NBI-EGI-Phase-V-_English_Translation-1.pdf?rlkey=lsh08sii3yhwi8uqlj9km7zz2&dl=0.
The sales collection account number is 9030012333977.

📚 Sources & References

11TH SITTING OF THE 2ND MEETING OF THE 3RD SESSION OF THE 11TH PARLIAMENT OF UGANDA: TUESDAY 31ST OCTOBER 2023 – TIME OF COMMENCEMENT: 2.00 P.M., 20TH SITTING OF THE 2ND MEETING OF THE 3RD SESSION OF THE 11TH PARLIAMENT OF UGANDA: TUESDAY 5TH DECEMBER 2023 – TIME OF COMMENCEMENT: 2.00 P.M.
China signs 151 mln USD deal to expand Uganda's data backbone infrastructure
Clearance for NBI 5 Repayment Mechanism Agreement
Framework Agreement for NBI-EGI Phase V _English_Translation (1)
NATIONAL TRANSMISSION BACKBONE AND E-GOVERNMENT INFRASTRUCTURE PROJECT - PHASE V
NATIONAL TRANSMISSION BACKBONE AND E-GOVERNMENT INFRASTRUCTURE PROJECT -PHASE V
NATIONAL TRANSMISSION BACKBONE AND E-GOVERNMENT INFRASTRUCTURE PROJECT -PHASE V
PARLIAMENTARY DEBATES (HANSARD) OFFICIAL REPORT FOURTH SESSION - SECOND MEETING TUESDAY, 26 NOVEMBER 2024
REPORT OF THE COMMITTEE ON NATIONAL ECONOMY ON THE PROPOSAL TO BORROtrr UP TO RENMINBI (RMBI YUAN 1,O5O,OOO,OOO FROM EXPORT IMPORT BANK OF CHINA TO FINANCE THE SUPPLY
INSTALLATION
COMMISSIONING AND SUPPORT OF THE NATIONAL DATA TRANSMISSION BACKBONE INFRASTRUCTURE/ INFRASTRUCTURE PROJECT PHASE V
Signed Sales Collection Arrangement Agreement for NBI Phase 5
Uganda National Transmission Backbone and e-Government Infrastructure Project (Phase 5) (2)
Uganda to borrow $150 mln from China's Exim after World Bank halts funding
Upcoming Business in Parliament (6 - 15th December, 2023), [Post on X from @pwatchug posted on October 31, 2023, beginning 'The Minister of Finance, is also expected to table a motion seeking Parliamentary approval to borrow Yuan 1,050,000,000 about Shs541.372Bn from Export Import Bank of China...']
驻乌干达大使张利忠出席乌通信骨干网和电子政务网五期项目框架协议签字仪式 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.