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Completed Development AidData Chinese Aid

China Eximbank provides RMB 359 million government concessional loan for Integrated Government Information System (IGIS) Project

¥359M RMB

Funder Export-Import Bank of China (China Eximbank)
Recipient Organization Government of Papua New Guinea
Country Papua New Guinea
Start Date Dec 23, 2010
End Date Nov 26, 2028
Duration 6,548 days
Number of Grantees 1
Roles Recipient
Data Source AidData Chinese Aid
Grant ID 39381
Grant Description

China Eximbank provides RMB 359 million government concessional loan for Integrated Government Information System (IGIS) Project On December 23, 2010, China Eximbank and the Government of Papua New Guinea signed an RMB 359 million $53 million government concessional loan (GCL) agreement for the Integrated Government Information System (IGIS) Project.

The borrowing terms of the GCL are unknown.

However, it is known that the borrower was to use the proceeds of the GCL to finance a commercial contract between Telikom PNG Ltd — a state-owned telecommunications company in Papua New Guinea (PNG) — and Huawei Technologies Co., Ltd., which was signed on September 7, 2010.

The purpose of the project was to develop a broadband infrastructure to link all government departments and agencies at the national and sub-national level and to establish a main data center to enable the operations of all government departments in an integrated cost-effective manner, working harmoniously together in a coordinated fashion for information sharing, archiving and storing data in a centrally secured environment.

The 6 components to the project were: (1) Records and Data Management Services (RDMS); (2) Government Email; (3) Civil Registration; (4) IGIS Portal; (5) IGIS Data Center & Disaster Recovery Center; and (6) Project Management Office (PMO). Phase 1 of the project was carried out in 46 sites. 15 of these sites were installed with IGIS equipment.

The first phase covered the metropolitan area in the National Capital District (NCD) and six other provinces (Central, Goroka, Wewak, Kimbe and Kokopo).

The second phase involved extending coverage to other provinces and linking the districts with the main centers so that all would be integrated to complete the primary backbone. Huawei Technologies Co., Ltd. was the contractor responsible for implementation. The project commenced in June 2011 and officially reached completion on July 11, 2014.

However, the data center in Port Moresby was not put into operation until 2018.

The IGIS project was the subject of international controversy after an Australian media outlet leaked the findings of a report that was commissioned by the National Cyber Security Centre of PNG and funded by the Australian Department of Foreign Affairs and Trade (DFAT).

The report noted the layout of the data center did not match the intended design, opening up major security gaps. "Core switches are not behind firewalls. This means remote access would not be detected by security settings within the appliances," it said.

In cataloguing major security flaws, the report, also said the algorithm used for encrypting communications was considered "openly broken" by cyber security experts two years before being installed in Port Moresby.

The Huawei firewalls in the data center reportedly reached their "end of life" in 2016, two years before the facility was opened.

While the report suggested a deliberate effort by Huawei to deploy lax cyber security, it noted this plan was partially thwarted by the center quickly falling into disrepair, as insufficient money was set aside for maintenance and operations. This resulted in many PNG government departments not moving their data into the center as planned.

The lack of an operating budget meant basic functions such as software licenses had expired, while batteries had degraded and were not replaced.

To get the data center up and running again, Port Moresby sought financial assistance from the Australian government, a request that resulted in the report being commissioned.

📋 Staff Comments
  1. This project is also known as the E-Government Network Project. The Chinese project title is 电子政府网项目 or 巴新集成化政务信息项目 or IGIS项目.
  2. The borrowing terms of the GCL are unknown. For the time being, AidData assumes that China Eximbank standard GCL borrowing terms (20-year maturities, 5-year grace periods, 2% interest rates) apply. This issue warrants further investigation.
  3. The Government of Papua New Guinea’s internal loan identification number for the China Eximbank GCL that supported this project is GCL NO.2011.
📚 Sources & References
  • Huawei to dominate PNG's telecoms
  • China happy to help with project
  • 驻巴新大使李瑞佑出席巴新集成政务信息系统启用仪式, 2018 BUDGET ESTIMATES FOR STATUTORY AUTHORITIES PROVINCIAL GOVERNMENTS DEBT SERVICES AND TRUST ACCOUNTS, 2019 BUDGET ESTIMATES FOR STATUTORY AUTHORITIES PROVINCIAL GOVERNMENTS DEBT SERVICES AND TRUST ACCOUNTS
  • PUBLIC INVESTMENT PROGRAM 2012 - 2018, 2016 BUDGET ESTIMATES FOR STATUTORY AUTHORITIES PROVINCIAL GOVERNMENTS DEBT SERVICES AND TRUST ACCOUNTS
  • Assessment of the Potential Impact of the ICT Revolution in the Pacific on Economic Growth
  • Employment, and Government Revenue
  • Report of the Auditor-General - 2012
  • 驻巴新大使李瑞佑出席巴新集成政务信息系统启用仪式
  • 驻巴新大使仇伯华与巴新外交部秘书长毛伟签署两国政府间贷款协议, 2014 ANNUAL PUBLIC INVESTMENT PROGRAM IMPLEMENTATION REPORT
  • PUBLIC INVESTMENT PROGRAM 2013 - 2017
  • A Promising New Trend? Factors Driving China’s Growing Trilateral Aid Cooperation
  • PNG TO GET $53 MILLION COMPUTER SYSTEM
  • Australia: Huawei's Papua New Guinea data center security 'openly broken,' making potential spying easy
  • Huawei data centre built to spy on PNG
  • Papua New Guinea and China’s Debt Squeeze
  • China refutes Australia's claims against Huawei
  • ICT for Development in the Pacific Islands
  • NEC approves e-Govt project
  • Government to get E-Government platform
  • Telikom’s capability in setting up network
  • Telikom joins K5.8m project
  • Chinese telco giant Huawei to invest in PNG
  • 中国优贷援助项目在巴新信息通讯行业改革中发挥重要作用
  • China's Overseas Development Finance
  • PNG and China sign multi-million kina agreements
  • 对外投资合作国别(地区)指南巴布亚新几内亚(2018年版, 2013 ESTIMATES OF DEVELOPMENT EXPENDITURE FOR NATIONAL DEPARTMENTS STATUTORY AUTHORITIES AND PROVINCIAL GOVERNMENTS
  • Remarks by H. E. Chinese Ambassador Mr.Qiu Bohua, 2014 BUDGET ESTIMATES OF REVENUE AND EXPENDITURE FOR NATIONAL GOVERNMENT DEPARTMENTS
  • Report of the Auditor-General 2011 Part I: Public Account of Papua New Guinea
  • Understanding the Regulatory Environment for ICT Infrastructure in Papua New Guinea: The Integrated Government Information System (IGIS) Case Study 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 Papua New Guinea

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