Completed Mixed AidData Chinese Aid

ZTE provides $73.8 million USD supplier's credit loan to Uzbektelecom for supply of equipment for Uzmobile National Mobile Network Development Project in 2015

$73.8M USD

Funder	ZTE Corporation (formerly Zhongxing Telecommunication Equipment Corporation)
Recipient Organization	Uzbektelecom JSC
Country	Uzbekistan
Start Date	Nov 06, 2015
End Date	Apr 10, 2028
Duration	4,539 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`111035`

Grant Description

ZTE provides $73.8 million USD supplier's credit loan to Uzbektelecom for supply of equipment for project Development of Uzmobile National Mobile Network in 2015 On 6 November 2015, the Group and ZTE Corporation signed a supplier's credit loan for supply of equipment for Uzmobile National Mobile Network Development Project of JSC Uzbektelecom (contract number: No S1UZ2015102201GUS) in the amount of 86,334,395 US dollars (equivalent to 1,065,260,243 thousand soums).

The total price of the contract includes the amount of Goods delivery, that is equal to 73,800,860 US dollars (equivalent to 910,611,837 thousand soums) and deferred payment interests as 3.9% per annum without deduction that is equal to 12,533,535 US dollars (equivalent to 154,648,406 thousand soums).

The maturity of the agreement is 31 December 2024, until all contractual obligations of both parties are being fully and satisfactorily completed. As of 31 December 2023, all goods were delivered.

As of December 2019, the amount outstanding balance is 532,154,533,000 Uzbekistan Soums; as of December 2020, the amount outstanding balance is 440,373,468,000 Soums; as of December 2021, the amount outstanding balance is 369,576,930,000 Uzbekistan Soums; as of December 2022, the amount outstanding balance is 268,924,249,000 Uzbekistan Soums; as of December 2023, the amount outstanding balance is 202,753,272,000 Uzbekistan Soums; As of December 2024, the loan is fully repaid.

📋 Staff Comments

The contract price for the goods that ZTE provides is $73.8 million USD, meaning this is the price Uzbeketelecom would spend if the company purchased the goods. However, because the company takes out a loan, the total interest accrued is $12.53 million. The specific amount of interest accrued is written in the contract instead of being charged separately. However, to reflect the interest rate, AidData codes 3.6% as the interest rate and subtracts the interest accrued from the total price. Therefore, AidData codes $73.8 million as the commitment amount.
In Uzbektelecom's consolidated financial statements starting in 2020 (https://uztelecom.uz/uploads/media/НоваяПапка/Consolidated_financial_statements_of_JSC_Uzbektelecom_2020.pdf) , there is a reference to three new loans committed in 2019. However, the reports do no provide descriptions on these loans. This issue warrants more investigation.

📚 Sources & References

Consolidated report 2020, consolidated report 2021
JSC Uzbektelecom consolidated financial statements 2022
Consolidated report 2023
Consolidated report 2024 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.