Active Mixed AidData Chinese Aid

China Eximbank provides $160.8 million preferential buyer’s credit for Phase 3 of National Telecommunication Coverage Project (Linked to Record ID#57477, #30497, #57529, and #68940)

¥160.88M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Republic of Congo
Country	Congo
Start Date	May 20, 2017
End Date	Mar 22, 2028
Duration	3,959 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`57531`

Grant Description

China Eximbank provides $160.8 million preferential buyer’s credit for Phase 3 of National Telecommunication Coverage Project On May 20, 2017, China Eximbank and the Government of the Republic of Congo signed a preferential buyer’s credit (PBC) agreement [China Eximbank PBC No. (2017) 20 Total No. (446)] worth $160,875,460.47 for Phase 3 of the National Telecommunication Coverage Project.

The PBC carried the following terms: a maturity of 20-years, a grace period of 5-years, an interest rate of 2%, a default (penalty) interest rate of 0%, a management fee of 0.50%, and commitment fee of 0.50%. The borrower agreed to deposit project-related revenues in an escrow account to facilitate repayment.

In 2017, China Eximbank and the Government of the Republic of Congo also signed an RMB 460 million government concessional loan (GCL) agreement for the same project. The GCL carries a maturity of 16-years. However, its interest rate and grace period are unknown.

The proceeds of the PBC and the GCL were to be used by the borrower to finance a commercial contract (number 2015-031/PR/AS/DGGT) between the Government of the Republic of Congo and Huawei Technologies Co., Limited, which was signed on July 13, 2015.

The purpose of Phase 3 is to extend the coverage of a fiber optic cable network to the entire country and strengthen the capacities of Congo-Telecom (the incumbent state-owned telecoms operator).

More specifically, it involves the laying of fiber optic cable between Ouesso and Impfondo; connecting the administrative centers of the country’s districts; and ‘last kilometer’ fiber optic work to institutions, businesses and households.

In April 2018, the Chinese Ambassador to the Republic of Congo, and the Congolese Minister of Planning, Equipment of the Territory met to discuss implementation.

This project faced significant implementation delays due to a fall in oil prices, which in turn made it far more difficult for the Congolese authorities to meet their outstanding debt obligations to China Eximbank.

However, after China Eximbank and the Congolese authorities signed a debt restructuring agreement in 2019, this project restarted. The PBC is captured in Record ID#57531. The GCL is captured in Record ID#68940.

📋 Staff Comments

The French project title is Projet de Couverture Nationale (PCN) en Télécommunication-Projet Phase III or Projet de Couverture Nationale en fibre optique Phase III or la 3ème phase du projet de couverture nationale en télécommunications or Couverture Télécom Phase 3. The Chinese project title is 全国电信覆盖网三期项目.
In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it identifies a $161 million China Eximbank preferential buyer’s credit for Phase 3 of National Telecommunication Coverage Project. However, it does not capture the RMB 460 million government concessional loan that China Eximbank issued in support of the same project.
The China Eximbank PBC agreement can be viewed in entirety at https://www.dropbox.com/s/nwkdqg7jx661wzt/COG_2017_455_Loi%20n%C2%B0%2033-2017%20du%2014%20ao%C3%BBt%202017.pdf?dl=0 or https://www.documentcloud.org/documents/20488113-cog_2017_455

📚 Sources & References

Accord de prêt de crédit acheteur préférentiel sur le projet de couverture nationale en télécommunications projet phase III
Allocution_Congo_Telecom
COG_2017_455_Loi n° 33-2017 du 14 août 2017.pdf, congo-jo-2019-27
D n°2019-150 du 17 juin 2019
Decree 2015-178
L n°33-2017 du 14 août 2017.pdf
La Chine déterminée à appuyer le Congo dans développement des télécommunications
Le Congo et la Chine préparent la 3ème phase du projet de couverture nationale en télécommunications
Le ministre Léon Juste Ibombo, des postes, des télécommunications et de l’économie numérique et Ma Fulin, ambassadeur de Chine au Congo, ont exprimé, ce jeudi 18 octobre 2018, leur détermination de traduire dans les faits les acquis de la dernière visite officielle du Président Denis Sassou-N’Guesso auprès de son homologue chinois
Xi-Jinping, du 5 au 6 septembre 2018, notamment ceux portant sur les télécommunications et l’économie numérique.
Les projets de coopération au centre d’une audience entre le ministre BOUYA et le nouvel ambassadeur de Chine au Congo
Loi no 3,3.-2OL7 du 14 aott 2Ol7 autorisant la ratification de I'accord de pr€t de credit acheteur preferentiel entre le Gouvernement de la Republique du Congo et la Banque d'import-export de Chine portant sur le projet de couverture nationale en telecommunication-proJet phase III
Plan National de Développement
Reflet17-red, ÉTAT DES LIEUX DE LA DETTE PUBLIQUE EN LA RÉPUBLIQUE DU CONGO
进出口银行与刚果（布）财政、预算及国有资产部签署贷款协议 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.