China Eximbank provides $50 million preferential buyer’s credit for SOTELGUI Modernization and Expansion Project

📋 Staff Comments

1. This project is also known as the 4G National Fiber Network Construction Project. The French project title is Modernisation et l’Expansion de la SOTELGUI or Modernisation des Réseaux de Sotelgui or Projet de réhabilitation de SOTELGUI or l'extension et la modernisation du réseau téléphonique en République de Guinée. The Chinese project title is 几内亚国家电信公司 or 电信网升级换代改造项目.
2. The World Bank’s Debt Reporting System (DRS) indicates that official sector loan commitments from China to the Government of Guinea (and/or entities backed by Government of Guinea repayment guarantees) in 2013 amounted to $387,038,766.
3. This amount is roughly equivalent to the sum of the $334.65 million loan that China Eximbank issued for the 240MW Kaléta Hydroelectric Power Plant Construction Project (captured via Record ID#53003) in 2013 and the $50 million loan that China Eximbank issued for the SOTELGUI Modernization and Expansion Project (captured via Record ID#64324) in 2013.
4. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Guinea was 20.361-years in 2013. AidData estimates the maturity of the China Eximbank loan that supported the SOTELGUI Modernization and Expansion Project by using this figure. See https://www.dropbox.com/scl/fi/z79xr3w040d2zufaw0eow/October-2024-Extract-from-IDS-on-Guinea-s-Borrowings-and-Borrowing-Terms-from-Official-PRC-Creditors.xlsx?rlkey=axiwonwbe90ne6avkoxynkzxf&dl=04. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Guinea was 9.0938-years in 2013. AidData estimates the grace period of the China Eximbank loan that supported the SOTELGUI Modernization and Expansion Project by using this figure. See https://www.dropbox.com/scl/fi/z79xr3w040d2zufaw0eow/October-2024-Extract-from-IDS-on-Guinea-s-Borrowings-and-Borrowing-Terms-from-Official-PRC-Creditors.xlsx?rlkey=axiwonwbe90ne6avkoxynkzxf&dl=0 5. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Guinea was 1.9332% in 2013. AidData estimates the interest rate of the China Eximbank loan that supported the SOTELGUI Modernization and Expansion Project by using this figure. See https://www.dropbox.com/scl/fi/z79xr3w040d2zufaw0eow/October-2024-Extract-from-IDS-on-Guinea-s-Borrowings-and-Borrowing-Terms-from-Official-PRC-Creditors.xlsx?rlkey=axiwonwbe90ne6avkoxynkzxf&dl=0

📚 Sources & References

• 华为公司助推几内亚电信行业实现跨越性发展
• 华为帮助几内亚国家电信公司一步跨越到4G时代
• ChinaLoansToAfrica©SAIS-CARI
• Guinea: According to the minister of telecoms, “the $50 million planned to revive the Sotelgui are not enough”
• 华为帮助几内亚国家电信公司一步跨越到4G时代
• 华为帮助几内亚国家电信公司一步跨越到4G时代
• Nécessité d’auditer l’ARPT : Lettre Ouverte président Alpha Condé
• FINANCEMENT DES INFRASTRUCTURES DE TELECOMMUNICATIONS/TIC, 4me-trimestre-BULLETIN-STATISTIQUE-VF-T4-2019-vf-16-juin-2020.pdf
• Debtor Reporting System (DRS)
• L/2013/N°056/CNT Authorizing the ratification of the concessional loan agreement
• BULLETIN STATISTIQUE DE LA DETTE PUBLIQUE
• BULLETIN STATISTIQUE DE LA DETTE PUBLIQUE Quatrième Trimestre 2020
• October 2024 Extract from IDS on Guinea's Borrowings and Borrowing Terms from Official PRC Creditors 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.