Active Development AidData Chinese Aid

China Eximbank provides RMB 499 million government concessional loan for Digital TV Transformation Project

¥499M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Papua New Guinea
Country	Papua New Guinea
Start Date	Jan 01, 2022
End Date	Jun 02, 2033
Duration	4,170 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`95856`

Grant Description

China Eximbank provides RMB 499 million government concessional loan for Digital TV Transformation Project On November 8, 2021, China Eximbank and the Government of Papua New Guinea signed an RMB 499 million preferential loan framework agreement for the Digital TV Transformation Project.

The parties subsequently signed a RMB 499 million government concessional loan agreement for the Digital TV Transformation Project in 2022.

📋 Loan / Grant Terms

📅 Maturity19.6666 years

💹 Interest Rate2%

The borrower is expected to use the proceeds of the GCL to finance 100% of the cost of an RMB 499 million ($69.28 million) commercial contract between China State Construction Engineering Corporation PNG Limited and the National Broadcasting Corporation (NBC) of Papua New Guinea, which was signed on March 27, 2020.

The purpose of this project is to fully upgrade PNG's existing analog signal TV system, and transform it into an ‘end-to-end’ digital TV system covering its major cities in 10 provinces with a full-link system that starts from program production and ends with user viewing.

It will seek to provide high-quality digital TV services for local people, consolidate the foundation of digital information construction in PNG, and accelerate the pace of modernization and application of digital technology.

The project will also involve establishing the main NBC transmission station 25 kilowatt to power the MW transmission signal in the country and it will be stationed in Lae, Morobe Province. China State Construction Engineering Corporation PNG Limited is the contractor responsible for implementation.

Project implementation commenced on May 23, 2022.

On October 7, 2024, the project achieved a milestone with the handover of an Outside Broadcast (OB) Van to the National Broadcasting Corporation (NBC).

The handover ceremony was attended by China's Ambassador to PNG, Yang Xioaguang, PNG Minister for ICT, Timothy Masiu and NBC Managing Director Kora Nou.

The OB van was equipped with cutting-edge broadcasting technology designed to significantly improve NBC's capacity to cover live events, especially those that require on-the-ground and remote coverage. The project was originally expected to reach completion within 18 months (November 23, 2023).

📋 Staff Comments

This project is also known as the Analogue to Digital Migration Project. The Chinese project title is 巴布亚新几内亚数字电视改造项目 or 巴布亚新几内亚数字电视项目.
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 Papua New Guinea was 5.1666-years in 2022. AidData estimates the grace period of the China Eximbank loan that supported the Digital TV Transformation Project by using this figure. See https://www.dropbox.com/scl/fi/drf58ay3c2fr6hlv24vq8/December-2023-DRS-Data-Extraction-for-Papua-New-Guinea.xlsx?rlkey=9gqc03oudt91eas7nf53zec38&dl=0 3. 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 Papua New Guinea was 19.6666-years in 2022. AidData estimates the maturity of the China Eximbank loan that supported the Digital TV Transformation Project by using this figure. See https://www.dropbox.com/scl/fi/drf58ay3c2fr6hlv24vq8/December-2023-DRS-Data-Extraction-for-Papua-New-Guinea.xlsx?rlkey=9gqc03oudt91eas7nf53zec38&dl=0 4. 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 Papua New Guinea was 2% in 2022. AidData estimates the interest rate of the China Eximbank loan that supported the Digital TV Transformation Project by using this figure. See https://www.dropbox.com/scl/fi/drf58ay3c2fr6hlv24vq8/December-2023-DRS-Data-Extraction-for-Papua-New-Guinea.xlsx?rlkey=9gqc03oudt91eas7nf53zec38&dl=0 5. As of 2024, the China Eximbank loan that supported this project was not included in the China's Overseas Development Finance (CODF) Database published by Boston University’s Global Development Policy Center.

📚 Sources & References

Papua New Guinea's Digital TV Transformation Project Financed by China Eximbank was Launched
中企助力巴布亚新几内亚迈入数字电视时代
中企助力巴布亚新几内亚迈入数字电视时代
中国建筑签约巴布亚新几内亚数字电视项目
佳创视讯中标巴新数字电视项目首都头端系统、外省发射站、用户管理系统设备供应安装工程中标价2.01亿
PNG National Broadcaster NBC Migrates From Analogue to Digital
VOLUME 3B PUBLIC INVESTMENT PROGRAM FOR STATUTORY AUTHORITIES AND PROVINCIAL GOVERNMENTS
VOLUME 3B PUBLIC INVESTMENT PROGRAM FOR STATUTORY AUTHORITIES AND PROVINCIAL GOVERNMENTS 2021 – 2025 Papua New Guinea
VOLUME 2C 2022 BUDGET ESTIMATES OF REVENUE AND EXPENDITURE FOR NATIONAL GOVERNMENT DEPARTMENTS
PNG Government Facebook Live
NBC News Videos, 2.15亿北广科技成功中标巴布亚新几内亚数字电视项目
PNG Government assures Transition from Analogue to Digital TV
December 2023 DRS Data Extraction for Papua New Guinea
深圳市佳创视讯技术股份有限公司关于收到中标通知的公告
VOLUME 2C 2024 BUDGET ESTIMATES OF REVENUE AND EXPENDITURE FOR NATIONAL GOVERNMENT DEPARTMENTS, 2023 BUDGET ESTIMATES OF REVENUE AND EXPENDITURE FOR NATIONAL GOVERNMENT DEPARTMENTS Volume 2A, 2024 Volume 2A Budget Estimates for Statutory Authorities
Provincial Health Authorities
Provincial Governments Debt Services and Trust Accounts
Chinese government delivers OB van to state broadcaster
China Hands Over Key of New Digital Television Facility to NBC 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.