China Eximbank provides loan for Lao Section of Greater Mekong Subregion (GMS) Information Superhighway Network (ISN) Project (Linked to Record ID#96221, 35826, 98029)

📋 Staff Comments

1. This project is also known as the Terrestrial Fibre Optic Network Project and the GMS ISN Project. The Chinese project title is GMS信 息⾼速公路第⼀阶段.
2. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Laos was 25.4876-years in 2007. AidData estimates the maturity of the China Eximbank loan that supported the Lao Section of Greater Mekong Subregion (GMS) Information Superhighway Network (ISN) Project by using this figure. See https://www.dropbox.com/scl/fi/uno1hf2pjg3nfz78h72c6/Private-and-Official-Sector-PRC-Borrowings-and-Borrowing-Terms-of-Lao-PDR-September-2024.xlsx?rlkey=s7eas067aykllu1lik074l5x5&dl=0.
3. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Laos was 8.7288-years in 2007. AidData estimates the grace period of the China Eximbank loan that supported the Lao Section of Greater Mekong Subregion (GMS) Information Superhighway Network (ISN) Project by using this figure. See https://www.dropbox.com/scl/fi/uno1hf2pjg3nfz78h72c6/Private-and-Official-Sector-PRC-Borrowings-and-Borrowing-Terms-of-Lao-PDR-September-2024.xlsx?rlkey=s7eas067aykllu1lik074l5x5&dl=0.
4. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Laos was 1.338% in 2007. AidData estimates the interest rate of the China Eximbank loan that supported the Lao Section of Greater Mekong Subregion (GMS) Information Superhighway Network (ISN) Project by using this figure. See See https://www.dropbox.com/scl/fi/uno1hf2pjg3nfz78h72c6/Private-and-Official-Sector-PRC-Borrowings-and-Borrowing-Terms-of-Lao-PDR-September-2024.xlsx?rlkey=s7eas067aykllu1lik074l5x5&dl=0.
5. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
6. The total estimated cost of the GMS ISN project is $65.9 million. See https://greatermekong.org/g/sites/default/files/gms-stcf7.pdf.
7. The Myanmar and Cambodia sections of the GMS ISN were also financed with loans from China Eximbank in 2007 (see Record ID#35826 and Record ID#32146).

📚 Sources & References

• An In-Depth Study of Broadband Infrastructure in the ASEAN Region August 2013
• Country Report on China's Participation in Greater Mekong Subregion Cooperation
• 中老共庆文明对话国际日, 2017 Assessment and Prospect of China-Laos Development Cooperation pdf
• Private and Official Sector PRC Borrowings and Borrowing Terms
• Expert Consultation on the Asian Information Superhighway and Regional Connectivity
• Greater Mekong Subregion Seventh Meeting of the Subregional Telecommunications Forum (STCF-7)
• Final section of GMS-IS fibre-optic cable begins operation 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.