[Sino-Congolese Programme] China Eximbank provides $23.3 million loan for Phase 2 of Mbuji Mayi-Mwene Ditu Paved Road Rehabilitation Project (Linked to Record ID#450, 59244)

Project narrative

In 2008, China Eximbank issued a $3.003 billion general buyer's credit loan to Sino–Congolais des Mines (Sicomines SARL) — a joint venture — to finance infrastructure projects in the DRC (as captured via Record ID#450). All subsidiary borrowings under the (government-guaranteed) general buyer's credit loan agreement were to be repaid with revenues from mining projects managed by Sicomines SARL. Each subsidiary loan carried a maturity of 25 years, a grace period of 10 years, and an interest rate of 6-month LIBOR plus a 1% margin (or 3.839% at the time of the agreement). All infrastructure projects supported through the general buyer's credit loan were part of the so-called ‘Sino-Congolese Programme.’ One of the subsidiary loans issued as part of the 'Sino-Congolese Programme' was a $23,322.145 loan for Phase 2 of the Mbuji Mayi-Mwene Ditu Paved Road Rehabilitation Project. The purpose of the project is to rehabilitate a 38.8 km segment of a 130 km road from the town of Mbuji-Mayi in Kasai Oriental (Eastern Kasai) to the town of Mwene-Ditu in the province of Lomami. CREC 7 — a subsidiary of China Railway Engineering Corporation (CREC) — is the contractor responsible for project implementation and it hired La Société d'infrastructures sino-congolaise (SISC S.A.) as a subcontractor. The work of CREC 7 and SISC S.A. is being supervised by ACGT. Phase 2 commenced on January 4, 2023. Then, on November 10, 2023, the Provincial Minister of Infrastructure and Public Works, Transport and Communications of Kasaï Oriental, ÉMILE BANZA MUTAMBAYI, inspected the project site. By the end of calendar year 2023, Phase 2 achieved a 37% completion rate.