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China Eximbank provides $93.77 million loan for Phase III (Sub-Phase I) of the Tanzania National Fiber Optic Backbone Project (Linked to Record ID#23142, 23150)
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Bank of Tanzania |
| Country | Tanzania |
| Start Date | Mar 25, 2013 |
| End Date | Dec 30, 2032 |
| Duration | 7,220 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 30603 |
Grant Description
China Eximbank provides $93.77 million loan for Phase III (Sub-Phase I) of the Tanzania National Fiber Optic Backbone Project On September 30, 2008, China Eximbank and the Government of Tanzania signed a $70 million government concessional loan (GCL) agreement for Phase I of the National Fiber Optic Backbone Project.
Then, in 2010, China Eximbank and the Government of Tanzania signed an RMB 700 million government concessional loan (GCL) agreement for Phase II of the National Fiber Optic Backbone Project.
Then, on March 25, 2013, China Eximbank and Bank of Tanzania signed a loan agreement worth $93.77 million for Phase III (Sub-Phase I) of the National Fiber Optic Backbone Project.
Huawei Technologies and China International Telecommunication Construction Corporation (CITCC) (a subsidiary of China Telecom) were the implementing contractors for the project's three phases. The entire backbone project was intended to cover 10,674 km. Tanzania Telecommunications Co Ltd (TTCL) was mandated to manage the National Fiber Optic Backbone.
It was also designed to connect to the international submarine cables of EASSY & SEACOM through cross-border connectivity -- namely Kenya (at two points of Sirari na Namanga), Uganda (at Mutukula), Rwanda (at Rusumo), Malawi (at Kasumulo), Burundi (at Kabanga) and Zambia (at Tunduma).
The first phase covered 7,000 kilometers over northern and eastern Tanzania in cities like Dar es Salaam to Tanga, Moshi, Arusha, Singida, Dodoma, Iringa, and Morogoro and provide connections to Rwanda, Burundi (Manyovu), Uganda, and Kenya (Horohoro).
Phase 1 ultimately laid 4,330 km of cable; 2,280 km of which was part of a newly built Optic Fibre Cable (OFC) network and 2,050 km of which was part of an existing OFC network from TANESCO. It started on July 24, 2009 and completed May 29, 2010.
The second phase was designed to be 3,674 kilometers and link Dar es Salaam to Kigoma, Taborak, Sumbawanga, Mbeya, Songea, Mtwara, and Lindi in Tanzania as well as Zambia and Malawi.
Phase II of the project ultimately laid 3,230 km of cable; 3,168 km of which was part of a newly built OFC network and 62 km of which was part of the existing OFC network from TANESCO. The second phase was supposed to increase connectivity to rural villages and reduce costs by approximately 80%. The second phase officially began on August 1, 2010 and completed on October 21, 2015.
Phase III involved the expansion of the existing NICTBB network by connecting Zanzibar and Pemba to the NICTBB, establishing a full-mesh Internet Protocol layer Multiprotocol Label Switching (IP-MPLS) to the existing Dense Wavelength Division Multiplexing (DWDM) and Synchronous Digital Hierarchy (SDH) layers, as well as building a data center in Dar es Salaam.
Works officially began on June 27, 2015, ended in June 2016, and the NICTBB was made operational in September 2016.
Staff Comments
- The Chinese project title is 国家骨干光纤网项目. The project is also known as Phase 3 of the National ICT Fiber Backbone Project (NICTBB) or National ICT Broad Infrastructure Project.
- 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 Tanzania was 26.1666-years in 2013. AidData estimates the maturity of the China Eximbank loan by using this figure. See https://www.dropbox.com/scl/fi/s7c2bgl6ybf4mnc10hcc1/Tanzania-s-Borrowings-and-Borrowing-Terms-from-Chinese-Creditors-IDS-August-2024-Export.xlsx?rlkey=0yy73c4iyn1m4lczn63jxsmcc&dl=03. 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 Tanzania was 7.6666-years in 2013. AidData estimates the grace period of the China Eximbank loan by using this figure. See https://www.dropbox.com/scl/fi/s7c2bgl6ybf4mnc10hcc1/Tanzania-s-Borrowings-and-Borrowing-Terms-from-Chinese-Creditors-IDS-August-2024-Export.xlsx?rlkey=0yy73c4iyn1m4lczn63jxsmcc&dl=04. 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 Tanzania was 1% in 2013. AidData estimates the interest rate of the China Eximbank loan by using this figure. See https://www.dropbox.com/scl/fi/s7c2bgl6ybf4mnc10hcc1/Tanzania-s-Borrowings-and-Borrowing-Terms-from-Chinese-Creditors-IDS-August-2024-Export.xlsx?rlkey=0yy73c4iyn1m4lczn63jxsmcc&dl=0
Sources & References
- The First Stage of the Tanzania ITC Phase III Project Were Formally Signed
- Tanzania: ICT Broadband to Link All Districts
- China's trade boost for Tanzania
- China aid to boost national budget
- 坦桑尼亚隆重举行国家骨干光纤网项目启用仪式
- Cooperation between China and Tanzania on ICT: fish, fishing tackle or fishing skills?
- Drivers of Economic Growth in Tanzania
- 坦桑尼亚启动国家光纤网络三期建设
- 林代表出席坦桑国家光缆骨干网三期一阶段开工典礼
- REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE REGIONAL COMMUNICATIONS INFRASTRUCTURE PROJECT (RCIP) CR.4.614-TA) FOR THE YEAR ENDED 30TH JUNE, 2016
- We need to cut down on the borrowing
- CAG says
- 坦桑尼亚启动国家光纤网络三期建设
- Domestic Network Coverage
- China's Infrastructure Development in Africa
- THE ANNUAL GENERAL REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2017
- Tanzania
- China sign Agreements; vow continued cooperation
- China-Tanzania Economic and Trade Cooperation
- China Aid to Boost National Budget
- China Offers to Finance Projects Worth Sh1.28 Trillion
- Tanzania's Borrowings and Borrowing Terms from Chinese Creditors IDS August 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.
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Bank of Tanzania
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