Completed Development AidData Chinese Aid

China Eximbank provides RMB 97 million government concessional loan for Phase 1 of National Optical Fiber Backbone Project (Linked to Record ID#62458)

¥97M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Sierra Leone
Country	Sierra Leone
Start Date	Aug 21, 2012
End Date	Jan 17, 2026
Duration	4,897 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`30254`

Grant Description

China Eximbank provides RMB 97 million government concessional loan for Phase 1 of National Optical Fiber Backbone Project On August 21, 2012, China Eximbank and the Government of Sierra Leone (represented by the Ministry of Finance and Economic Development) signed an RMB 97,000,000 ($14,908,704) government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO. (2012) 24 TOTAL NO. (426) Series No. 10002012009210] for Phase 1 of the National Optical Fiber Backbone Project.

The proceeds of the loan were on-lent by Sierra Leone’s Ministry of Finance and Economic Development to Sierra Leone Cable Limited (SALCAB), a state-owned company in Sierra Leone responsible for owning, operating, and managing the network of the National Optical Fiber Backbone Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

The borrower agreed to deposit project-related revenues in a special account to facilitate repayment.

Under the original terms of the loan agreement, the borrower was responsible for making 30, equal, semi-annual principal payments (each worth RMB 6,466,666). By October 11, 2015, the loan had achieved a 100% disbursement rate ($14,908,704 out of $14,908,704).

Loan disbursements included $2,971,558 on January 18, 2013, $7,883,435 on January 23, 2014, and $4,053,711 on October 11, 2015.

The (principal) amount outstanding under the loan was RMB 93,469,200 as of December 31, 2015, RMB 93,469,200 as of December 31, 2016, RMB 87,002,500 as of December 31, 2017, RMB 83,769,200 as of December 31, 2018, RMB 81,124,000 as of December 31, 2019, RMB 74,775,000 as of December 31, 2020, RMB 68,544,100 as of December 31, 2021, and RMB 62,077,400 as of December 31, 2022.

The proceeds of the loan were to be used by the borrower to finance a commercial contract (number 0006941103080A) between Huawei Technologies Company Limited and the Ministry of Information and Communication of the Republic Sierra Leone, which was signed on June 20, 2011.

The purpose of this project was to connect Sierra Leone to international fiber that links France with South Africa and thereby provide better internet services to Sierra Leoneans.

It involved the laying of 350-400 km of fiber optic cable and the establishment of ICT facilities (including internet connections) in Lungi, Port Loko, Rogbaray, Makeni, Massingbe, Sewafeh, and Koidu. Huawei Technologies was the contractor responsible for implementation. The project commenced on January 10, 2013.

Then, in February 2013, the President of Sierra Leone commissioned the landing of the fiber optic cable. The project was officially completed on December 31, 2016.

📋 Staff Comments

This project is also known as the Phase I of the National Fibre Optic Backbone Infrastructure Project. The Chinese project title is 塞拉利昂光纤骨干网项目.
In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not identify the borrowing terms of this loan. AidData relies on the maturity (20-years, grace period (5-years) and interest rate (2%) reported in the China Eximbank loan agreement that supported this project [CHINA EXIMBANK GCL NO. (2012) 24 TOTAL NO. (426) Series No. 10002012009210].
The China Eximbank loan agreement can be accessed in its entirety at https://www.documentcloud.org/documents/20488797-sle_2012_466.
The identification number for this project in the Government of Sierra Leone’s Development Assistance Database (DAD) is SL/001923.
The Government of Sierra Leone loan identification number for this project is 2012284.
This China Eximbank loan is not recorded the China’s Overseas Development Finance Dataset, which Boston University's Global Development Policy Center published in December 2020.
Phase 2 of this project, which is captured via Record ID#62458, was also funded by China Eximbank.
Data on disbursements, repayments, and amounts outstanding can be accessed via https://www.thesierraleonetelegraph.com/wp-content/uploads/2019/12/Sierra-Leone-Auditor-General-Report-2018.pdf and https://website.auditservice.gov.sl/wp-content/uploads/2023/12/Auditor-General-Annual-Report-2022.pdf and https://website.auditservice.gov.sl/wp-content/uploads/2023/12/assl-auditor-general-annual-report-2016.pdf and https://mof.gov.sl/wp-content/uploads/2022/08/Sierra-Leone-Report-on-SOEs-_31st-August-2022-Final.pdf and https://website.auditservice.gov.sl/wp-content/uploads/2023/12/Auditor-Generals-Annual-Report-2018.pdf and https://website.auditservice.gov.sl/wp-content/uploads/2023/12/Annual-Report-on-the-Account-of-Sierra-Leone-2021.pdf and https://website.auditservice.gov.sl/wp-content/uploads/2023/12/Auditor_Generals_Annual-Report-2017_10_1_19.pdf and https://website.auditservice.gov.sl/wp-content/uploads/2023/12/Annual-Report-on-the-Account-of-Sierra-Leone-2019.pdf and https://mof.gov.sl/wp-content/uploads/2024/04/FINAL-REPORT-on-SOEs-CLEAN-24TH-APRIL-2024.pdf9. Under Clause 6.11 of the loan agreement, '[t]he Borrower undertakes that a repayment mechanism will be established for the satisfactory of the Lender, under which a special account will be opened by the Representative of End-User in a bank acceptable by the Lender, and the revenue generated [...] from the Project will be collected and deposited into this special account, for the purpose of the payment and repayment of all due amounts under the [Loan] Agreement. The special account shall be supervised by the Borrower and the Lender shall be entitled to examine the status and all information of this special account.'

📚 Sources & References

Annex 1: Budget Profile for FY2011-2015
Annual Report 2012
Annual Report on the Account of Sierra Leone 2019
Auditor_Generals_Annual-Report-2017
Budget-Transparency-2022
China Eximbank Sierra Loan National Optical Fiber Backbone Project
China gives out $258million in loans and grant to SaLone
China loans Sierra Leone US$15million
Economic and Financial Review July - December 2012
FINANCE MINISTER SIGNS 15 MILLION DOLLAR FRAME WORK AGREEMENT ON CONCESSIONAL LOAN
National Optic Fibre Backbone Project
National Optic Fibre Backbone Project
National Optic Fibre Backbone Project
National Telecommunications Commission (NATCOM)
Open Data Sierra Leone
President Koroma commissions fibre optic cable
Report on the Accounts of Sierra Leone for the Financial Year ended 31st December, 2021
Report on the Accounts of Sierra Leone for the Financial Year ended 31st December, 2022
REPORT ON THE OUTSTANDING LOANS/DEBT INCLUDING GUARANTEES OF THE SEVENTEEN STATE-OWNED ENTERPRISES
S.Leone
China sign $15mln fibre optic deal
Sierra Leone : Finance minister inks $15 million loan contract
Sierra Leone gets Chinese loan for ACE project
Sierra Leone signs reviewed contract with China's Huawei
Sierra Leone's government envisions full fibre coverage by 2017
Sierra Leone’s costly step into the brave new world of faster internet access
Sierra-Leone-Public-Debt-and-SoEs-Tables-Debt-Transparency-December-2021_August-2022
Sierra-Leone-Public-Debt-and-SoEs-Tables-Debt-Transparency-December-2021_March-2022
SL [SL/001923] NATIONAL OPTIC FIBRE BACKBONE PROJECT
SLE_2012_466
Transmittal Letter
Transmittal Letter (For 2016 Financial Year)
Trasnmittal Letter
塞拉利昂光纤骨干网项目优惠贷款框架协议在塞签署 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 Sierra Leone

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