CDB provides $40 million loan to Uzbektelecom for 5G Telecommunications Infrastructure Project

📋 Staff Comments

1. One source puts the face value of the at $150 million. However, for the time being, AidData uses the more conservative estimate.
2. The Russian project title is модернизации и развитию телекоммуникационной инфраструктуры АК «Узбектелеком».
3. For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
4. On July 26, 2019, the Government of Uzbekistan announced plans to allow its Ministry of Information Technologies and Communications to conclude contracts with Huawei for the supply of technological equipment and software relevant to 5G development. This came after Huawei and the Ministry held discussions on July 11, 2019 regarding the possibility of launching a 5G network through one of Uzbekistan’s state-owned telecommunications operators. This decision coincided with the CDB announcement that it would allocate $40 million for telecommunications infrastructure projects with Uzbektelecom. Previously, in June 2019, the Uzbek Ministry for Development of Information Technologies and Communications signed an MoU with CITIC on the implementation of a smart city project that would involve a technological contribution from Huawei.
5. There are some indications that the $40 million CDB loan may have initially been issued to the National Bank of Foreign Economic Activity of the Republic of Uzbekistan (NBU) and then on-lent to Uzbektelecom. This issue warrants further investigation.

📚 Sources & References

• 乌兹别克斯坦拟使用中国贷款实施电信改造项目
• 乌兹别克斯坦拟用4000万美元中国贷款实施电信改造项目
• State Development Bank of China to provide loans for the modernization and development of the infrastructure of Uzbektelecom
• The State Development Bank of China to provide loans for the modernization and development of the infrastructure of Uzbektelecom
• Uzbekistan will borrow $ 40 million from China to develop the Internet
• PRESIDENT OF THE REPUBLIC OF UZBEKISTAN RESOLUTION ON MEASURES TO IMPLEMENT THE AGREEMENTS REACHED DURING THE HIGH-LEVEL VISIT TO THE PEOPLE'S REPUBLIC OF CHINA
• 中国向乌兹别克斯坦提供4000万美元贷款以实现其电信现代化
• Uzbektelecom will take a loan from the Chinese for modernization - kursiv 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.