Completed Development AidData Chinese Aid

China Eximbank provides RMB 420 million loan for Phase 2 of National Transmission Backbone and e-Government Infrastructure Project (Linked to Record ID#53401 and Record ID#59750)

¥420M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Uganda
Country	Uganda
Start Date	Feb 23, 2009
End Date	May 01, 2027
Duration	6,641 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`53402`

Grant Description

China Eximbank provides RMB 420 million loan for Phase 2 of National Transmission Backbone and e-Government Infrastructure Project On January 13, 2009, the Chinese Government and the Government of Uganda signed a preferential loan framework agreement for Phase 2 of the National Transmission Backbone and e-Government Infrastructure Project.

Then, on February 23, 2009, China Eximbank and the Government of Uganda signed a government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO. (2009) 8 TOTAL NO. 259] worth RMB 420,000,000 ($61,421,468.27) for Phase 2 of the National Transmission Backbone and e-Government Infrastructure Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

According to the Government of Uganda’s Aid Management Platform (AMP), this loan achieved a 99.2% disbursement rate, with China Eximbank making six loan disbursements (worth $60,934,878.18) between 2009 and 2013: a $18,346,305.05 disbursement on May 11, 2009, a $12,201,149.01 disbursement on July 28, 2010, a $6,120,200.86 disbursement on August 5, 2010, a $10,873,331.18 disbursement on September 29, 2010, a $1,182,980.94 disbursement on December 20, 2011, and a $12,210,911.14 disbursement on September 6, 2013.

According to the Uganda Ministry of Finance, Planning, and Economic Development's Report on Public Debt, Grants, Guarantees and Other Financial Liabilities for Financial Year 2021/2022, as of December 31, 2021, total loan disbursements amounted to $63,755,746.99 and the loan’s amount outstanding (including arrears) was $29,752,681.93.

The proceeds of the GCL were to be used by the borrower to finance a commercial (turnkey) contract [ID#00F8000610060A and 0008000610060A] between the Government of Uganda’s Ministry of Information and Communication Technology and Huawei Technologies Co., Ltd., which was signed on October 6, 2006.

The NBI/EGI project is composed of two components: the National Data Transmission Infrastructure (NBI) and the e-Government Infrastructure (EGI).

The purpose of NBI was to connect all districts to National Backbone Infrastructure through the laying of fiber optic cable to all major towns and the use of alternative technologies like wireless technologies to cover to the rest of the country, and to provide low cost bandwidth throughout the country through the building of the NBI.

The purpose of EGI was to connect all government ministries and some government departments into an e-government network and to provide services like videoconferencing, data and voice communication.

It involved the establishment of a Primary Data Centre for Government at Statistics House; the establishment of the Network Operations Centre in Statistics House that will monitor the entire infrastructure; and an effort to connect all government ministries and some government departments through the laying of fiber optic cable onto the e-Government Network.

Huawei was the contractor responsible for project implementation.

Phase 2 involved the laying of 368.39 kilometers of fiber optic cable to connect the towns of Busia, Malaba, Tororo, Mbale, Kumi, Soroti, Lira, Gulu, Elegu (at the border with Southern Sudan), Masindi, Nakasongola, Luwero, Kyenjojo, Kasese, Fort Portal, Bushenyi and Mbarara.

The project also achieved the following: (1) construction of a Primary Data Centre in Statistics House; (2) installation of backup equipment in all 27 government ministries and departments installed during Phase I; (3) repairs to damages caused on Phase I; (4) installation of 17 Optical Switching Transmission sites in the towns mentioned above, that will be utilized to extend eGovernment Services to Local Governments and the Population in these areas; and (5) installation of a centralized email and Office Automation Platform that will be piloted in State House, Ministry of ICT and NITA before rollout to all government ministries and agencies.

Huawei Technologies Co., Ltd. was the contractor responsible for project implementation. Phase 2 was completed on October 7, 2011.

Implementation of Phase 2 of the National Backbone Data Transmission project is reported to have taken place within nationally protected areas of Uganda as well as within potential critical habitats (See Source ID# 122899).

📋 Staff Comments

The China Eximbank loan (GCL) agreement can be accessed in its entirety via https://www.dropbox.com/s/2rb6sxfi6a551tr/Uganda%20National%20Transmission%20Backbone%20and%20e-Government%20Infrastructure%20Project%20%28Phase%202%29.pdf?dl=0.
The Government of Uganda’s agreement code for the GCL agreement is L-0575. The system identification number in the Government of Uganda’s Aid Management Platform (AMP) is 872992768.
One official source indicates that Phase 2 actually involved the laying of 1400.734 kilometers of fiber optic cable connecting Busia, Tororo, Mbale, Malaba, Kumi, Soroti, Lira, Gulu, Elegu, Masindi, Kyenjojo, Fort Portal, Kasese, Bushenyi and Mbarara.
Phase 1 of the National Transmission Backbone and e-Government Infrastructure Project is recorded via Project ID#53401. Phase 3 of the National Transmission Backbone and e-Government Infrastructure Project is recorded via Project ID#59750. Phase 4 of the project was funded by the World Bank and the Government of Uganda and it focused on missing links in the NBI and last mile connectivity.
This project is also known as Phase 2 of National Backbone Infrastructure Project and Phase II of the National Data Transmission Backbone Infrastructure and e-Government Infrastructure Project (NBI/EGI). The Chinese project title is 乌干达电子政务和国家骨干网项目 (or 国家骨干网).
One source refers to the face value of the China Eximbank loan as RMB 405,996,595. AidData relies on the face value of the loan (RMB 420,000,000) as recorded in the actual GCL agreement [CHINA EXIMBANK GCL NO. (2009) 8 TOTAL NO. 259].

📚 Sources & References

A Transactional Risk Profile of Huawei
Aid Management Platform - National Transmission Backbone Project
BMAU Briefing Paper (7/19) - The National Backbone Infrastructure: Is the country reaping investment dividends?
BMAU Briefing Paper [14/15]: 'Implementation in crisis': How can the National Transmission Backbone Infrastructure be realized?
China plays critical role in advancing Uganda's ICT development
China's Overseas Development Finance
Forensics dispute quality of Uganda’s internet cables, framework agreement
Fresh storm brews over national fibre optic cable project
Government agencies set to get single link today, https://img1.wsimg.com/blobby/go/87d8897e-0526-4b64-8769-54eb32823548/Chinas-Overseas-Lending-for-Transport-Projects.pdf
KAMP ALA-ENTEBBE EXPRESS HIGHW A Y
Map Showing Proposed Phasing of the NBI-EGI Project
MARCH 2015 VALUE FOR MONEY AUDIT REPORT
MARCH 2015 VALUE FOR MONEY AUDIT REPORT
MARCH 2015 VALUE FOR MONEY AUDIT REPORT
MINISTRY OF FINANCE
PLANNING AND ECONOMIC DEVELOPMENT
National Back bone Infrastructure (NBI)/Connectivity Phase 3
National Backbone Infrastructure (NBI) and E-Government Infrastructure (EGI) - Backgrounder September 16, 2011
National Backbone Infrastructure Project
National Data Transmission Backbone Infrastructure and eGovernment Infrastructure (NBI/EGI). Connectivity; Phase 3 Implementation, national transmission project
Parliament met at 2.46 p.m. in Parliament House
Kampala
PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF 54.4 MILLION SDR (US$75 MILLION EQUIVALENT) TO THE REPUBLIC OF UGANDA FOR A REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM PHASE 5 - UGANDA PROJECT
REPORT OF THE COMMITTEE ON NATIONAL ECONOMY ON THE PROPOSAL BY GOVERNMENT TO BORROW UP TO SDR 54.4 MILLION (US$75.0 MILLION) FROM THE INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) TO SUPPORT THE REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM (RCIP) PHASE V
REPORT ON PUBLIC DEBT
GUARANTEES
OTHER FINANCIAL LIABILITIES AND GRANTS FOR FINANCIAL YEAR 2016/17 AND THE MEDIUM TERM DEBT MANAGEMENT STRATEGY 2017/18 – 2020/21
REPORT ON PUBLIC DEBT
GUARANTEES,OTHER FINANCIAL LIABILITIES AND GRANTSFOR FINANCIAL YEAR 2017/18
REPORT ON THE ALLEGED IRREGULAR PROCUREMENT OF TETRA COMMUNICATION WALKIE TALKIES SYSTEM FOR CHOGM
Uganda stops construction of national fibre backbone over project cost
Uganda: Internet Cable Launched
Uganda: Phase 2 Fibre Optic roll-out finalized
中国进出口银行代表团来乌考察优惠贷款项目
综述：中国通信技术助力乌干达经济发展
驻乌干达大使郑竹强考察调研乌干达骨干网项目 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.