China Eximbank provides RMB 207 million government concessional loan for Phase 2 of National Fibre Optic Backbone Infrastructure Project (Linked to Record ID#30254)

📋 Staff Comments

1. In 2012, China Eximbank provided RMB 97 million for Phase I of this project (as captured via Record ID#30254).
2. This project is also known as the National Fibre Backbone Phase II Project, the Second Phase of the Fiber Optic Cable Project, and the NFB Phase 2 Project. The Chinese project title is 塞拉利昂光纤骨干网二期项目.
3. The Government of Sierra Leone loan identification number for this project is 2019012.
4. The identification number for this project in the Government of Sierra Leone’s Development Assistance Database (DAD) is SL/004762.
5. This China Eximbank loan is not recorded the China’s Overseas Development Finance Dataset, which Boston University's Global Development Policy Center published in December 2020. Nor is it included in the database of Chinese loan commitments that SAIS-CARI released in July 2020.
6. The first phase of the fiber optic backbone project was also implemented by Huawei, reportedly as part of a broader scheme supported by the World Bank and Economic Community of West African States (ECOWAS) to expand digital access throughout the region.
7. The Sierra Leone Cable Limited (SALCAB) — a state-owned enterprise — was created by the Government of Sierra Leone as part of an effort to participate in the Africa Coast to Europe (ACE) Consortium that landed the undersea Submarine Fibre Optic Cable.  SALCAB has two components, both of which were financed with loans. The ACE submarine cable is being paid for with a World Bank loan. The terrestrial backbone is being paid for with loans from Islamic Development Bank and China Eximbank.
8. The China Eximbank GCL (loan) agreement can be accessed in its entirety via https://www.dropbox.com/s/2jp6sb3je9altau/Government%20Concessional%20Loan%20on%20Sierra%20Leone%20Fibre%20Backbone%20Network%20Project%20Phase%20II%20August%2026%2C%202019.pdf?dl=0.
9. The on-lending agreement between the Government of Sierra Leone’s Ministry of Finance and SALCAB can be accessed in its entirety via https://www.dropbox.com/s/2jp6sb3je9altau/Government%20Concessional%20Loan%20on%20Sierra%20Leone%20Fibre%20Backbone%20Network%20Project%20Phase%20II%20August%2026%2C%202019.pdf?dl=0.
10. The commercial contract (ID#0002881900010V) between the Government of Sierra Leone’s Ministry of Information and Communications and Huawei Technologies Co., Ltd can be accessed in its entirety via https://www.dropbox.com/s/2jp6sb3je9altau/Government%20Concessional%20Loan%20on%20Sierra%20Leone%20Fibre%20Backbone%20Network%20Project%20Phase%20II%20August%2026%2C%202019.pdf?dl=0.
11. Data on disbursements, repayments, and amounts outstanding can be accessed via https://www.thesierraleonetelegraph.com/wp-content/uploads/2019/12/Sierra-Leone-Auditor-General-Report-2018.pdf and https://website.auditservice.gov.sl/wp-content/uploads/2023/12/Auditor-General-Annual-Report-2022.pdf and https://website.auditservice.gov.sl/wp-content/uploads/2023/12/assl-auditor-general-annual-report-2016.pdf and https://mof.gov.sl/wp-content/uploads/2022/08/Sierra-Leone-Report-on-SOEs-_31st-August-2022-Final.pdf and https://website.auditservice.gov.sl/wp-content/uploads/2023/12/Auditor-Generals-Annual-Report-2018.pdf and https://website.auditservice.gov.sl/wp-content/uploads/2023/12/Annual-Report-on-the-Account-of-Sierra-Leone-2021.pdf and https://website.auditservice.gov.sl/wp-content/uploads/2023/12/Auditor_Generals_Annual-Report-2017_10_1_19.pdf and https://website.auditservice.gov.sl/wp-content/uploads/2023/12/Annual-Report-on-the-Account-of-Sierra-Leone-2019.pdf and https://mof.gov.sl/wp-content/uploads/2024/04/FINAL-REPORT-on-SOEs-CLEAN-24TH-APRIL-2024.pdf and https://website.auditservice.gov.sl/wp-content/uploads/2023/12/Auditor-Generals-Annual-Report-2020.pdf12. The 'special account' is described in Clause 6.13 of the China Eximbank loan agreement. Further, §1.7 reads 'Any payments or repayments made by SALCAB under this On-Lending Agreement shall be made through a Special Account (the Escrow Account) opened in accordance with the provisons of the Loan Agreement.' and §1.8 reads 'SALCAB shall issue a standing authorization to their bankers to transfer to the Special Account the equivalence of debt service falling under the On-Lending Agreement, one month before the respective debt service due date, to enable funds to be utilized from the Special Account to effect debt service payment to the EXIM Bank of China'

📚 Sources & References

• 2020 BUDGET SPEECH
• PROFILES AND FISCAL STRATEGY STATEMENT
• ANNEX 15c: GOVERNMENT OF SIERRA LEONE TERMS OF EXTERNAL LOANS SIGNED AND RATIFIED FROM 2020 TO END-DECEMBER 2024 AND END-MARCH 2025
• Annual Report on the Account of Sierra Leone 2019
• Annual Report on the Accounts of Sierra Leone 2020
• Budget-Transparency-2022
• DRS Official Commitments from China through 2020
• FIBER BACKBONE PHASE 2 TO CONNECT 14 DISTRICTS
• Fibre Bachbone Network Phase II
• Fibre Bachbone Network Phase II
• Fibre Bachbone Network Phase II
• Government Concessional Loan on Sierra Leone Fibre Backbone Network Project Phase II August 26, 2019
• GOVERNMENT OF SIERRA LEONE. TOTAL DEBT STOCK 2020 TO 2025
• Guinea plans to launch a fiber optic backbone network interconnection project in West Africa
• Huawei Transforms Sierra Leone’s Digital Landscape
• Huawei
• Sierra Leone Deepen Partnership; Exim Bank to Fund Phase 2 of National Fiber Optic Backbone Project
• Multi-million dollar China-Sierra Leone cooperation plan to boost development
• Parliament approves 12 loan and grant agreements on infrastructure
• PARLIAMENT APPROVES SEVERAL LOAN AND GRANT AGREEMENTS
• Phase Two Fibre Optic To Kick Off
• Presidential Address
• PUBLIC FINANCIAL MANAGEMENT REFORM PROGRESS REPORT 2019
• Report on the Accounts of Sierra Leone for the Financial Year ended 31st December, 2021
• Report on the Accounts of Sierra Leone for the Financial Year ended 31st December, 2022
• REPORT ON THE OUTSTANDING LOANS/DEBT INCLUDING GUARANTEES OF THE SEVENTEEN STATE-OWNED ENTERPRISES
• SALCAB TAKING INTERNET CONNECTIVITY TO UNDERSERVED AREAS IN SIERRA LEONE
• SALCAB’S MANAGEMENT RETREAT ENDS SUCCESSFULLY
• Sierra Leone secures US$30-million to advance fibre optic project
• Sierra Leone: construction of phase 2 of the national fiber optic network has started
• Sierra-Leone-Public-Debt-and-SoEs-Tables-Debt-Transparency-December-2021_August-2022
• Sierra-Leone-Public-Debt-and-SoEs-Tables-Debt-Transparency-December-2021_March-2022
• Technical team from the Ministry of Information and Communications evaluates National Fiber Backbone Phase 2 Project
• Unbundle SALCAB if it will give us improved internet access at reduced cost!
• US$30m loan signed to minimise access gap to broadband services
• 中国政府为塞拉利昂光纤骨干网二期项目提供优惠贷款协议签署
• 中国政府为塞拉利昂光纤骨干网二期项目提供优惠贷款协议签署 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.