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Completed Mixed AidData Chinese Aid

Alcatel-Lucent Shanghai Bell (ASB) provides $77.5 million supplier credit for Phase 1 of the National Rural Telephony Project (NRPT) (Linked to Record ID#61422)

$77.58M USD

Funder Export-Import Bank of China (China Eximbank)
Recipient Organization Nokia Shanghai Bell Co., Ltd. (formerly known as Alcatel-Lucent Shanghai Bell Co., Ltd.)
Country Nigeria
Start Date Jul 05, 2002
End Date Jan 16, 2026
Duration 8,596 days
Number of Grantees 1
Roles Recipient
Data Source AidData Chinese Aid
Grant ID 73339
Grant Description

Alcatel-Lucent Shanghai Bell (ASB) provides $77.5 million supplier credit for Phase 1 of the National Rural Telephony Project (NRPT) On June 5, 2002, Alcatel-Lucent Shanghai Bell (ASB) entered into a commercial contract with the Government of Nigeria for Phase 1 of the National Rural Telephony Project (NRPT).

Then, on July 5, 2002, ASB signed a $77,579,034.40 supplier credit agreement with the Government of Nigeria for Phase 1 of the National Rural Telephony Project (NRPT).

📋 Loan / Grant Terms
💰 Loan Amountcarried the following terms: 11 year maturity
📅 Maturity11 years
⏳ Grace Period3 years
💹 Interest Rate3.5%

The final maturity date of the loan was June 20, 2013, and according to the Government of Nigeria’s Debt Management Office (DMO), the loan was fully repaid by the end of 2013.

In order to finance its supplier credit agreement with the Government of Nigeria, ASB secured an export seller’s credit from China Eximbank.

The purpose of this project was to provide telecommunication (including phone, fax, and internet) services to 108 of the country’s 774 Local Government Areas (LGAs) in 36 states. It was envisaged that the project would install 636,256 Code Division Multiple Access (CDMA) lines. ASB was originally the sole contractor responsible for project implementation.

However, on April 4, 2003, the commercial contract for this project was amended and assigned to a consortium including ASB and China National Machinery and Equipment Import and Export Corporation (CMEC).

This consortium, in turn, hired Alcatel-Lucent Nigeria Ltd (ALU Nigeria) and other subcontractors to support the implementation of the project. Phase 1 was plagued by various problems and controversies. As of 2011, the project had still not successfully installed a single CDMA line.

Then, in 2012, a top official of Nigeria’s Ministry of Communications Technology announced that “[t]he telecom industry is fully liberalised, there is very little government involvement and, therefore, we believe that the National Rural Telephony Project is better implemented and managed outside of government.

So these six rural telephony exchanges are being concessioned to companies that have paid for them and our role is to monitor the implementation and delivery of services to rural areas.

In a sense, we are getting out of the rural telephony.” Then, on February 21, 2013, the Nigerian anticorruption authorities launched an investigation regarding the alleged mismanagement of the National Rural Telephony Project, which focused specifically on the role of Alcatel-Lucent Nigeria Ltd (ALU Nigeria) and other vendors that supported the project.

📋 Staff Comments
  1. This project is also known as Phase 1 of the ALCATEL Nigerian Local Government Rural Telephony Project and the Nigeria National Rural Network Project. The Chinese project title is 尼日利亚农网一期项目 or 尼日利亚全国农网项目 or 农网电话项目 or 了尼农话网一期项目.
  2. On December 27, 2006, ASB and CMEC entered into a contract with the Government of Nigeria for Phase 2 of the NRPT, and ASB’s portion of the contract was later assigned to CMEC on February 1, 2007. Phase II of the project was never undertaken due to a lack of financing.
  3. See Project ID#61422 for a separate supplier credit from ZTE for Phase 1 of the National Rural Telephony Project (NRPT).
📚 Sources & References
  • 尼日利亚众议院通讯委员会调查50亿奈拉的农网电话项目, http://nigeria.mofcom.gov.cn/sys/print.shtml?/ztdy/200804/20080405456896
  • Nigerian rural telephony: N3bn equipment arrives from China March 5, 2005 - 23:25 BJT (07:25 GMT) Telecommunications machinery and tools worth N3 billion have arrived in Nigeria rekindling hopes for the immediate take off of rural telephony projects earmarked by the Federal Government. The projects are to be handled by a consortium of Chinese firms namely
  • Alcatel Shanghai Bell Company Limited
  • China National Machinery Equipment and the Import and Export Corporation. Director
  • Telecommunications and Postal Services Development
  • Ministry of Communications
  • Mr. Anthony Ozodinobi, confirmed the arrival of the equipment in an interview with our correspondent in Abuja. Ozodinobi said the equipment includes the switching system, the transmission system and cables for external line plant. He said the arrival of the machinery represented a major milestone and signaled the commitment of the consortium of contractors and the federal government to ensure the early roll out of the rural telephony network. He said the design of the projects had been completed and handed over to the contractors on Friday to enable them begin construction and installation at the sites. He also said that three teams of Nigerians would depart for China in March for training in switching, billing, and transmission. The Alcatel Shanghai Bell project will provide telecommunication access to the headquarters of 108 out of the 774 Local Government Areas in the country. It will employ digital fixed exchange system and other integrated services such as Internet and fax. It is being financed from a $200 million (N26.6 billion) concessionary loan from the People’s Republic of China, while the federal government is providing counterpart funding of 20 percent. The second phase of the project that is being handled by another Chinese firm
  • ZTE, will also benefit from the Chinese loan and provide access to another 110 local government areas in the country. The ZTE project will deploy Code Division Multiple Access technology for advanced fixed wireless telecommunications services with the capacity to deliver toll-quality voice, fax and Internet. Alcatel Shanghai Bell leverages on Alcatel Group’s resources to deliver end-to-end solutions, while CMEC deals mainly with the import and export of machinery and electrical products and foreign economic and technical cooperation. Meanwhile, the Executive Vice Chairman of the Nigerian Communications Commission
  • Mr. Ernest Ndukwe, has identified lack of adequate transmission infrastructure as a major constraint to the realization of the Federal Government’s objective of ensuring that every village and hamlet has access to a telephone network. “Even mobile operators cannot reach where they want to because of lack of transmission infrastructure. It leaves satellite as the only option to reach rural areas,” he said. Ndukwe said the NCC would address this inhibition with its “Wire Nigeria” programme, which aims to provide optic fibre transmission facilities to all parts of the country. The industry regulator also identified funding as another major obstacle in connecting the rural populace. According to him, some annual operating levies from telecommunication firms would be channeled to the universal access fund. (Source: PUNCH) 【Big Medium-sized Small】 【Print】 Relative Articles: Nigerian parliament to probe privatization firm operation2011-12-06 Nigerian ministers see culture as biggest economy sector for job creation2011-12-04 Nigerian apex bank chief says retaining subsidy could spell economic doom2011-12-04 Nigerian central bank governor says yuan becoming reserve currency2011-09-27 Nigerian ambassador: Nigeria-China trade to top Africa in three years2009-12-02 Ministry of Commerce Website Copyright and Disclaimer Statement: All articles marked with 'Article type: Original' posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be attached with a clear indication of 'Source: Ministry of Commerce Website'. All articles posted on this website or its sub-sites marked with 'Article type: reproduced' or 'Article type: translated' and 'Article type: redistributed' come from other media, and are provided solely for the user's information, which does not mean this Website or its sub-sites endorse the ideas thereof or assume any legal liability or responsibility for their authenticity. Any other media, websites or individuals must maintain the source of information indication on this Website or its sub-sites when using the information, and shall assume legal liability for the use. Beijing time: 2019/09/04/8AM local time: 2019/09/04/1AM
  • Annual Report and Statement of Accounts 2009
  • FG Abandons $200 Million Rural Telephony Project
  • 尼日利亚电信市场简况 及进一步促进我企业开拓尼市场的思考和建议
  • Fresh Headaches for Rural Telephony Project
  • ChinaLoansToAfrica©SAIS-CARI.csv
  • Rural Telephony Rip-Off
  • 中国企业开拓尼日利亚通讯市场的现状、存在问题及建议, https://www.justice.gov/sites/default/files/criminal-fraud/legacy/2011/02/16/12-20-10alcatel-lucent-dpa.pdf
  • FORM 20-F/A Amendment No. 1, 2013 Annual Report and Statement of Accounts
  • DEBT MANAGEMENT OFFICE ACTUAL EXTERNAL DEBT SERVICE PAYMENTS IN SECOND QTR, 2013
  • Actual External Debt Service Payments in 2009
  • Actual External Debt Service Payments in 2010
  • Actual External Debt Service Payments
  • January - December 2011
  • Actual External Debt Service Payments
  • January - December 2012
  • Actual External Debt Service Payments
  • January - December 2013, 2016 Report of the Annual National Debt Sustainability Analysis (DSA), 20 Years After
  • Rural Telephony Project Still In Doldrums
  • Nigeria abandons National Rural Telephony Project 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

Nokia Shanghai Bell Co., Ltd. (formerly known as Alcatel-Lucent Shanghai Bell Co., Ltd.)

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