China Eximbank provides RMB 96.9 million government concessional loan for Phase 3 of National Transmission Backbone and e-Government Infrastructure Project (Linked to Record ID#53401 and Record ID#53402)

📋 Staff Comments

1. The China Eximbank loan (GCL) agreement can be accessed in its entirety via https://www.dropbox.com/s/effcaiu2e1davkp/Uganda%20National%20Transmission%20Backbone%20and%20e-Government%20Infrastructure%20Project%20Phase%203.pdf?dl=0.
2. 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.
3. One official source indicates that Phase 3 also involved installation of 756 kilometers of optic fiber cable to the towns of Masaka, Kyotera, Mutukula, Lyantonde, Mbarara, Ntungamo, Kabale and Katuna and linking Kyenjojo district to Masindi through Hoima. Phase 1 of the National Transmission Backbone and e-Government Infrastructure Project is recorded via Project ID#53401. Phase 2 of the National Transmission Backbone and e-Government Infrastructure Project is recorded via Project ID#53402. 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.
4. This project is also known as Phase 3 of National Backbone Infrastructure Project and Phase III 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).
5. This China Eximbank loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020.
6. Section 6.13 of the GCL agreement outlines the collateralization arrangement: 'The Borrower undertakes that the repayment of principal and payment of interest and fees under this Agreement shall be credit enhanced and secured by the Escrow Account Agreement and the following arrangements: (1) After this Agreement has been signed by the Borrower and the Lender, the On-Lending Agreement(s) shall be duly signed by the Borrower and End-User, in form and substance acceptable to the Lender. (2) The Repayment Reserve Account and the Sales Collection Account shall be opened and maintained with the Escrow Account Bank and be subject to the escrow arrangement under the Escrow Account Agreement. The Repayment Reserve Account shall be used to maintain the minimum amount of balance as a debt service reserve as required by the Lender and the Lender shall be entitled to utilized the funds in the Repayment Reserve Account. The Sales Collection Account shall be used to collect the revenues generated from the Project and the required amount of funds in the Sales Collection Account shall be transferred to the Repayment Reserve Account as required by the Lender. (3) All the revenues (proceeds) which generate from the Project and belong to the End-User shall be applied in priority to payment of any and all amounts due and payable under this Agreement. (4) The Borrower undertakes to ensure that the successors or permitted signees and transferee of the parties to the Security Document shall abide by the provision of the relevant Security Documents. (5) Notwithstanding the existence of the Security Document, the Borrower shall be fully liable for the payment and repayment obligations under this Agreement. The Borrower’s obligations under this Agreement shall not be affected or undermined by the execution, delivery, and performance by the relevant parties of such Security Documents.'

📚 Sources & References

• Aid Management Platform - National Transmission Backbone Project
• ANNUAL BUDGETPERFORMANCE REPORT
• ANNUAL REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF GOU FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2016
• Background to the Budget Fiscal Year 2017/18
• 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, framework agreement, https://www.monitor.co.ug/uganda/oped/commentary/what-is-government-hiding-in-giving-special-treatment-to-chinese--1805968
• Map Showing Proposed Phasing of the NBI-EGI Project
• 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
• 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 PUBLIC DEBT
• GUARANTEES,OTHER FINANCIAL LIABILITIES AND GRANTSFOR FINANCIAL YEAR 2018/19
• The Certificate of Compliance for the Annual Budget FY2018/19 to the NDP II Assessment Report by the National Planning Authority
• Uganda’s big China debt
• 乌干达主干网基础设施项目三期竣工
• 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.