Completed Development AidData Chinese Aid

China Eximbank provides RMB 245 million government concessional loan for Phase 1 of National Fiber-Optic Network Backbone Project (Linked to Record ID#19149)

¥245M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Democratic Republic of Congo
Country	Democratic Republic of the Congo
Start Date	Jan 28, 2008
End Date	Jul 10, 2032
Duration	8,930 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`134`

Grant Description

China Eximbank provides RMB 245 million government concessional loan for Phase 1 of National Fiber-Optic Network Backbone Project On January 28, 2008, China Eximbank and the Government of the Democratic Republic of Congo signed an RMB 245 million government concessional loan (GCL) agreement [CHINA EXIMBANK GCL n° 3 (2008) TOTAL n° (222)] for Phase 1 of the National Fiber-Optic Network Backbone Project.

📋 Loan / Grant Terms

📅 Maturity10 years

⏳ Grace Period5 years

💹 Interest Rate2%

The loan was underpinned by the following source of collateral: fees paid by users of fiber optic infrastructure, which were deposited in a lender-accessible escrow account (that was created in October 2013).

According to Government of the DRC's Aid Management Platform (AMP), the USD commitment value of the loan was $42,538,472.95 and final cumulative through the loan amounted to $43,760,884.71, which implies a 102.8% disbursement rate. The purpose of the first phase of this project was to lay 650 km of fiber optic cable from Kinshasa to Muanda (Moanda).

China International Telecommunication Construction Corporation (CITCC) was the contractor responsible for implementation. Construction began in 2009 and ended in 2010. However, the project was plagued by controversy.

The country’s legislature organized a commission of inquiry to determine why many project inputs were overpriced and the project underperformed vis-a-vis its coverage objectives.

📋 Staff Comments

The French project title is Réalisation du Réseau national Backbone à fibre optique (phase I), Réseau national de câble à fibre optique (1ère phase), and Réseau National Backbone à Fibre Optique (Phase I). The Chinese project title is 刚果（金）光缆骨干网一期.).
In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not record the borrowing terms of this loan. AidData records the borrowing terms that are reported in the 2013 Public Debt Audit published by the Government of the Democratic Republic of Congo (a 2% interest rate, a 5-year grace period, and a 10-year maturity).
The China Eximbank loan for the second phase of the project is captured via Record ID#19149.

📚 Sources & References

http://dspace.cigilibrary.org/jspui/bitstream/123456789/32536/1/saia_spb_39_mthembu-salter_20111111.pdf?1
China
DR Congo sign agreement on optical cable network loan
Roundup: China
DRC agree to further strengthen cooperation, http://citcc-2.com/news/readnews.asp?newsid=2559&path=cpxx
Djibouti : coup d'envoi d'un projet d'adduction d'eau potable entre Djibouti et l'Ethiopie (PAPIER GENERA)
对外投资合作国别（地区）指南刚果民主共和国
中国进出口银行与刚国（金）签署一揽子合作协议
Projets
刚果（金）SCPT全国光缆骨干传输网工程
刚果（金）SCPT全国骨干光缆传输网项目----光缆帮助刚果（金）连通世界, . GESTION DE LA DETTE ET DES CREANCES PUBLIQUES
DEVELOPMENT AID CHINA-DRC
Fibre optique_ l’Assemblée plénière approuve le ra…lée Nationale.pdf
PRESIDENCE DE LA REPUBLIQUE
PRESIDENCE DE LA REPUBLIQUE
SUMMARY, http://global.factiva.com/aa/?ref=XNEWS00020080109e41a0080x&pp=1&fcpil=en&napc=S&sa_from=
How China delivers development assistance to Africa
RAPPORT ANNUEL 2006-2008
When Chinese development finance met the IMF's public debt norm in DR Congo
Evaluating China's FOCAC commitments to Africa and mapping the way ahead
Kinshasa : les syndicalistes de la SCPT plaident pour la restitution de la gestion du compte séquestre
Fibre optique, qui veut cacher qui?
RDC : Fibre optique, les gâchis ? 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.

All Grantees

Government of Democratic Republic of Congo

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