Loading grant details…
Government of Zambia assumes responsibility for a $103 million outstanding debt obligation of LAP Green Networks to ZTE
| Funder | ZTE Corporation (formerly Zhongxing Telecommunication Equipment Corporation) |
|---|---|
| Recipient Organization | Government of Zambia |
| Country | Zambia |
| Start Date | Jan 01, 2014 |
| End Date | Nov 29, 2031 |
| Duration | 6,541 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 72987 |
Grant Description
Government of Zambia assumes responsibility for a $103 million outstanding debt obligation of LAP Green Networks to ZTE In 2010, the Government of Zambia sold Zambia Telecommunications Company Limited (ZAMTEL) — the country’s stated-owned telecommunication service provider — to Libya’s LAP Green Networks (LAP GreenN) for $394 million.
LAP GreenN is an investment company owned by the Government of Libya.
Then, in 2011, LAP GreenN obtained a loan from ZTE Corporation — a Chinese state-owned enterprise — to support the expansion of ZAMTEL network through a Global System for Mobile Communication [GSM] Phase IV Project and a Universal Mobile Telecommunication System [UMTS] Project.
In 2012, a new administration came to power in Zambia and it reversed the sale of ZAMTEL to Libya’s LAP Green Networks (LAP GreenN), alleging that it significantly undervalued ZAMTEL and that it was illegal.
LAP GreenN denied any wrongdoing in the manner it acquired the company and said it would challenge the Zambian authorities in court.
Then, in 2014, the Government of Zambia agreed to repay the $103 million loan that LAP GreenN had obtained from ZTE Corporation in 2011 for the expansion of ZAMTEL network.
The repayment of the $103 million loan was considered to be the first step in compensating LAP GreenN over its investment in ZAMTEL.
In November 2017, the Government of Zambia confirmed its intention to pay LAP GreenN $382 million as compensation for the nationalization of ZAMTEL.
ZAMTEL reported an outstanding debt to ZTE Corporation and Huawei worth $22,200,276 as of June 30, 2021 and $22,200,330 as of December 31, 2022.
Staff Comments
1. Some sources reported that the Government of Zambia sought a loan from China Eximbank to repay the debt owed to ZTE. However, AidData has not independently corroborated this claim with any official sources.
Sources & References
- REPUBLIC OF ZAMBIA Global Depositary Notes Representing Zambian Kwacha Denominated Bonds GDN Listing Memorandum
- Zambia pays loan for Libya's Lap Green, but Zamtel case continues
- Zambia's president moves to reassure nervous investors
- THE REPUBLIC OF ZAMBIA U.S.$1,250,000,000 8.970 per cent. Amortising Notes due 2027
- Zambia pays loan for Libya's Lap Green, but Zamtel case continues
- Zambia prepares to pay another $50m to ‘LapGreen’
- REPORT TO H.E THE PRESIDENT OF THE REPUBLIC OF ZAMBIA MR. MICHAEL C HILUFYA SATA OF THE COMMISSION OF INQUIRY INTO THE SALE OF ZAMTEL CHAIRED BY HON. SEBASTION ZULU S.C. MINISTER OF JUSTICE
- ZAMBIA’S PAYMENT TO 'LAPGREEN’ OF LIBYA INTERCEPTED?
- Chinese Loans to Africa Database
- End December 2022 2 Public Debt Summary
- End June 202021 Public Debt Summary
- End June 2022 Public Debt Summary 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
Government of Zambia
Interested in applying for this grant?
Complete our application form to express your interest and we'll guide you through the process.
Apply for This GrantQuick Summary
Related Grants
