Active Mixed AidData Chinese Aid

China Eximbank provides $31.5 million buyer’s credit loan for Phase 1 of National Telecommunications Network Construction Project (Linked to Record ID#34116, 96221, 98029)

$31.5M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Myanmar Posts and Telecommunications
Country	Myanmar
Start Date	Feb 14, 2006
End Date	Sep 02, 2031
Duration	9,331 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`64790`

Grant Description

China Eximbank provides $31.5 million buyer’s credit loan for Phase 1 of National Telecommunications Network Construction Project On February 14, 2006, during Myanmar Prime Minister Soe Win's visit to China, China Eximbank and Myanmar Posts and Telecommunication (MPT) — a state-owned enterprise in Myanmar — signed a $31.5 million subsidiary buyer’s credit loan agreement for Phase 1 of the National Telecommunications Network Construction Project.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

The proceeds of the loan were to be used by the borrower to finance a commercial contract between MPT and ZTE Corporation for Phase 1 of the National Telecommunications Network Construction Project.

There are some indications that the China Eximbank buyer's credit loan for Phase 1 of the National Telecommunications Network Construction Project may have financially underperformed vis-a-vis the original expectations of the lender.

In 2020, China Eximbank and the Government of Myanmar signed a debt suspension agreement as part of the G-20 Debt Service Suspension Initiative (DSSI).

Under the terms of the agreement, the lender agreed to suspend principal and interest payments due between May 1, 2020 and December 31, 2020 under 3 buyer’s credit loan (BCL) agreements, 6 government concessional loan (GCL) agreements, and 27 preferential buyer’s credit (PBC) agreements (as captured via Record ID#98029).

Debt service payments under many of these loan agreements were again deferred in 2021 (as captured via Record ID#96221).

📋 Staff Comments

This $31.5 million loan appears to have been part of a larger, $150 million loan commitment captured via Project ID#34116.
The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
The Chinese project title is 缅甸通讯设备项目.
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 Myanmar was 15.0531-years in 2006. AidData estimates the maturity of the China Eximbank buyer's credit loan that supported Phase 1 of the National Telecommunications Network Construction Project by using this figure. See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 5. 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 Myanmar was 5.7195-years in 2006. AidData estimates the grace period of the China Eximbank buyer's credit loan that supported Phase 1 of the National Telecommunications Network Construction Project by using this figure. See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=06. 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 Myanmar was 2.8597% in 2006. AidData estimates the interest rate of the China Eximbank buyer's credit loan that supported Phase 1 of the National Telecommunications Network Construction Project by using this figure. See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0

📚 Sources & References

dropbox source
温家宝总理与缅甸总理梭温在人民大会堂举行会谈
Senior General Than Shwe and wife Daw Kyaing Kyaing see off Prime Minister General Soe Win on departure for People's Republic of China, 2月14日，中国进出口银行李若谷行长与缅甸邮电总公司签署了出口买方信贷协议。, 2月14日，中国进出口银行李若谷行长与缅甸邮电通讯公司董事长Maung Maung Tin在人民大会堂签署了中兴通讯公司出口缅甸通讯设备项目买方信贷协议。温家宝总理和来访的缅甸总理梭温出席了签字仪式。
Li Changchun visited Myanmar to inspect the economic and industrial projects of Chinese enterprises in Myanmar
China Overseas Development Finance 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.