Active Development AidData Chinese Aid

China Eximbank provides RMB 1.316 billion government concessional loan for ICT Modernization Project (Linked to Record ID#91949)

¥1.32M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Chad
Country	Chad
Start Date	Jun 26, 2019
End Date	Mar 11, 2032
Duration	4,642 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92012`

Grant Description

China Eximbank provides RMB 1.316 billion government concessional loan for ICT Modernization Project On June 26, 2019, the Chinese Ambassador to Chad, Li Jinjin, and Chad’s Minister of Economy and Development Planning, Issa Dubrani, signed a preferential loan framework agreement for the ICT Modernization Project.

On the same day, China Eximbank and the Government of Chad signed an RMB 1.316 billion (CFA 111.4 billion or $189 million) government concessional loan (GCL) agreement for the ICT Modernization Project (as captured via Record ID#92012). The loan agreement was subsequently approved unanimously by Chad’s Parliament on April 30, 2020.

📋 Loan / Grant Terms

💰 Loan Amountcarries the following borrowing terms: a 20 year maturity

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

It is apparently collateralized against project (telecommunication infrastructure) revenues deposited in an escrow account that is accessible to the lender.

The borrower is expected to use the proceeds of the grant and loan to finance a commercial (EPC) contract with Huawei Technologies Co., Ltd. As of December 31, 2020, the loan had achieved a 31.5% disbursement rate.

The Chinese Government also issued an RMB 170 million grant in 2019 for the ICT Modernization Project (as captured via Record ID#91949).

The project has three components: the construction of a national data center; the construction of a 1200 km optic fiber cable network spanning the country from south to east (along the Doba-Koumra-Sarh-Kyabé-Am Timan-Abéché-Am Zoer-Guéréda-Iriba axis); and the construction of 50 km loop of fiber optic cables in the vicinity of N’Djamena with 200 2G/3G/4G sites.

Huawei Technologies Co., Ltd. is the EPC contractor responsible for implementation. A groundbreaking ceremony took place on July 7, 2020.

According to the Government of Chad's Aid Management Platform, the project's originally expected commencement date was May 1, 2020 and its originally expected completion date was October 31, 2021.

📋 Staff Comments

This project is also known as the NTIC Project. It was one of five priority projects that the President of Chad, Idriss Deby, presented to Xi Jinping at the 2018 FOCAC summit in Beijing. The French project title is Project de Modernisation des TIC or Projet de la Modernisation de l’Industrie des Technologies de l’Information et de la Communication.
The World Bank’s Debtor Reporting System (DRS) records the face value of the loan as $190,555,774.50.
At least one source suggests that a preferential loan framework agreement rather than a GCL agreement was signed on June 26, 2019. This issue warrants further investigation.
The Aid Management Platform (AMP) system identification number for this project is 8728332467. See https://tchad.ampdev.net/aim/viewActivityPreview.do~activityId=34055. Indirect evidence of collateralization based on an escrow account arrangement can be found at https://www.dropbox.com/s/ujv7ubwrb1s072h/mahamat-atteib.pdf?dl=0. China Eximbank requires that it borrowers sign a 'repayment mechanism agreement' when such arrangements are required.
The disbursement rate information is drawn from the Ministry of Finance's Rapport de Gestion de La Dette Publique 2020 (see https://www.finances.gouv.td/index.php/le-ministere/le-ministre/item/download/391_811e0028012cc3e5fc05419896b41c4d)

📚 Sources & References

Chad/China: a stronger partnership
Réseau à fibre optique Tchad/Soudan officiellement inauguré
Tchad : un prêt de 111 milliards FCFA pour développer les TIC
Chad 2019 Approval External Enacted Budget Budget
Ambassade de Chine au Tchad
DIRECTION DE LA DETTE
Debtor Reporting System (DRS)
Tchad : fracture numérique, l'Assemblée approuve un prêt de 111,4 milliards Fcfa
Chad hails relations with China after successful digitization of infrastructure
国家信息产业现代化项目优惠贷款框架协议在乍得签署
DRS Official Commitments from China through 2020
China Loans to Africa
Aid Management Platform
AMP Record -- January 2023 -- Projet de Modernisation des NTIC au Tchad
Direction Generale des Services du Tresor et de la Comptabilite Publique 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.