Completed Mixed AidData Chinese Aid

ICBC provides $68.6 million loan for GSM Mobile Network Expansion Project

$68.64M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Bénin Télécoms S.A.
Country	Benin
Start Date	Oct 20, 2005
End Date	Apr 01, 2029
Duration	8,564 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`72932`

Grant Description

ICBC provides $68.6 million loan for GSM Mobile Network Expansion Project In 2005, the Industrial and Commercial Bank of China (ICBC) and Bénin Télécoms S.A. — Benin’s incumbent state-owned telecommunications operator — signed a loan agreement worth $68,638,789 (CFAF 28,902,075,774).

📋 Loan / Grant Terms

💰 Loan Amountwere as follows: an interest rate of LIBOR plus a 1% margin

📅 Maturity6 years

⏳ Grace Period1 year

On October 27, 2005, the Government of Benin issued a sovereign guarantee for this loan.

The proceeds of the loan were to be used by the borrower to finance a commercial contract with ZTE for the construction of a GSM mobile network of 156,000 lines, which was signed on November 24, 2004.

As of 31 December, 2011, Benin’s Ministry of Economy reported that CFAF 8,675,205,928 had been amortized, and CFAF 20,226,869,846 was outstanding.

Then, in December 2014, Benin’s Ministry of Economy reported that CFAF 19,744,650,734 had been amortized, and CFAF 7,514,778,892 was outstanding.

According to the World Bank and MOFCOM's 2019 Investment Guide, this project was completed; however, its precise project implementation start and end dates are unknown.

📋 Staff Comments

This loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020.
The French project title is l'extenslon du réseau cellulaire mobile GSM et de celle du réseau conventionnel CDMA.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
This government-guaranteed loan from ICBC does not appear to be captured in the World Bank’s Debtor Reporting System (DRS).”

📚 Sources & References

DÉCRET N° 2005-677 DU 27 OCTOBRE 2005
RAPPORT D’EXECUTION AU 31 DECEMBRE 2011 DU BUDGET GENERAL DE L’ETAT
GESTION 2011
Les relations de coopération entre la Chine et le Bénin sont excellentes
ETAT DE L’ENCOURS ET DES ECHEANCES DU SERVICE DE LA DETTE DE L’ETAT, État des lieux des télécommunications au Bénin
Chinese Loans to Africa Database
Africa’s ICT Infrastructure Building on the Mobile Revolution
Coopération Economique Chine-Bénin, 2006 Article IV Consultation - Benin
Africa Research Bulletin - Economic Financial and Technical Series Volume 45 No 7
DRS Official Commitments from China through 2020 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.

All Grantees

Bénin Télécoms S.A.

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