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China Eximbank provides RMB 250 million government concessional loan for Code Division Multiple Access (CDMA) Mobile Communication Network Project
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Government of Cambodia |
| Country | Cambodia |
| Start Date | Apr 08, 2006 |
| End Date | Nov 24, 2032 |
| Duration | 9,727 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 32102 |
Grant Description
China Eximbank provides RMB 250 million government concessional loan for Code Division Multiple Access (CDMA) Mobile Communication Network Project On April 20, 2004, the Chinese Government and the Government of Cambodia signed an RMB 250 million ($30 million) preferential loan framework agreement.
Cambodian Finance Ministry Secretary of State Ouk Rabun and Chinese Vice Commerce Minister An Min signed on behalf of their respective governments.
The agreement was signed with Cambodian Prime Minister Hun Sen during his 5-day visit to China (19-23 April 2004).
Then, on April 8, 2006, China Eximbank and the Government of Cambodia signed an RMB 250 million government concessional loan (GCL) agreement — based upon the terms and conditions specified in the April 20, 2004 preferential loan framework agreement — for the Code Division Multiple Access (CDMA) Mobile Communication Network Project.
The proceeds of the GCL were used by the Government of Cambodia to on-lend to a private company called AZ Distribution Co Ltd (also known as AZ Communication Company and Azcom) — headed by a ruling party (CPP) parliamentarian named Ung Bun Hauv (Ung Bun Hov) — in order to establish a new mobile phone service in Cambodia.
AZCOM was then supposed to use the loan proceeds to finance a $30 million commercial contract that it signed with with Huawei Technologies on September 28, 2005.
The purpose of the project and the commercial contract was to supply and install CDMA (Code Division Multiple Access) equipment and thereby support Azcom’s expansion efforts.
At the time that the loan agreement was signed, opposition lawmaker Son Chhay argued that the deal risked wasting government funds. He said: “It’s a private company.
We don’t understand the reason behind the government’s commitment to borrowing money from the Chinese for that company.
We’re doubtful of how we’re going to benefit from it.” He also noted that Azcom appeared to be the “right hand” of the government. AidData has not identified any evidence that this project was implemented.
Staff Comments
- This project is also known as the AZCOM CDMA 2000 1X Project or the CDMA2000 Mobile Communication Network System Project. The Chinese project title is CDMA2000移动通讯网络系统项目.
- On August 4, 2005, Azcom received a license from Cambodia’s Ministry of Posts and Telecommunications to install the CDMA2000 system, thereby become the fifth mobile service provider in the country.
Sources & References
- China offers Cambodia loan to develop telecommunications industry
- Chinese Huawei signs contract with Cambodia's mobile operator
- Telecommunications Development in Asia
- China and Cambodia ICT deals:the ties that bind
- 访华为柬埔寨老挝代表处总经理朱平
- 柬埔寨近期部分招商引资项目资料
- Cambodia
- Gov’t Directs $30M Loan to Private Firm
- QUALCOMM OFTA Submission CDMA2000_FINAL1 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 Cambodia
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