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Overview

China Eximbank provides $62.9 million loan for Phase 1 of Oyo Inland Wharf Construction Project (Linked to Record ID#60219, ID#72815)

Commitments (Constant USD, 2023)$65,038,174
Commitment Year•2013Country of Activity•CongoDirect Recipient Country of Incorporation•CongoSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 29, 2013
Start (actual)
Aug 21, 2013
End (planned)
Aug 21, 2016
End (actual)
Aug 10, 2017
Last repayment (originally scheduled)
Dec 29, 2025

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project involved the construction of an inland port on the Alima River in the town of Oyo and the Department of Cuvette. More detailed locational information can be found at https://www.openstreetmap.org/way/389269280.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Republic of Congo

Implementing agencies

State-owned companies

  • China Communications Construction Co., Ltd. (CCCC)

Collateral providers

State-owned companies

  • Société Nationales des Pétroles Congolais (SNPC)

Loan desecription

China Eximbank provides $62.9 million loan for Phase 1 of Oyo Inland Wharf Construction Project

Interest type•UnknownMaturity•13 years

Collateral

This China Eximbank loan -- and other subsidiary China Eximbank loans approved under a June 19, 2006 framework agreement that was renewed/extended in 2012 -- was collateralized against cash proceeds from SNPC oil export sales to Chinese importers (through an offtake agreement), which were deposited in a China Eximbank-controlled escrow account. The Republic of Congo was required to maintain a minimum cash balance in the escrow account equivalent to approximately 20% of its total outstanding debt to China Eximbank. The cash balance in the China Eximbank-controlled escrow account was $534,238,226 (CFA 272,846,414,000) in 2011, an unknown amount in 2012, an unknown amount in 2013, an unknown amount in 2014, an unknown amount in 2015 (equivalent to 26% of SNPC oil sales in 2015), $281,560,937 in 2016 (equivalent to 7,558,672 barrels of oil or 32% of SNPC oil sales in 2016), $338,285,020 in 2017 (equivalent to 23.25% of SNPC oil sales in 2017), $513,780,005 in 2018 (equivalent to 7,411,386 barrels of oil, eight oil cargoes, or 30.22% of SNPC oil sales in 2018), $523,547,187 in 2019 (equivalent to 8,228,065 barrels of oil, 9 oil cargoes, or 32.56% of SNPC oil sales in 2019), $266,659,781 in 2020 (equivalent to 6,349,813 barrels of oil, 7 oil cargoes, or 31.61% of SNPC oil sales in 2020), $319,164,228 in 2021 (equivalent to 4,585,056 barrels of oil or 21.4% of SNPC oil sales in 2021), and $356,343,684 in 2022 (equivalent to 3,634,514 barrels of oil 13.09% of SNPC oil sales in 2022).

Narrative

Full Description

Project narrative

On March 29, 2013, China Eximbank and the Republic of Congo signed a $600 million loan framework agreement (captured in Record ID#30235) — also known in the Republic of Congo as the “strategic partnership 3” (“partenariat stratégique 3”) — that allowed the Republic of Congo to obtain China Eximbank loans for infrastructure projects through a securitization mechanism: Société Nationales des Pétroles Congolais (SNPC)—the country’s state-owned oil company — agreed to deposit a portion of the cash proceeds from its oil exports into an escrow account that is controlled by China Eximbank. Two of the subsidiary loans that were approved through the framework agreement supported the Oyo Inland Wharf Construction Project. They included a $62,901,334 loan in 2013 for Phase 1 of the Oyo Inland Wharf Project (captured via Record ID#30502), and a $22,464,556.92 loan for Phase 2 of the Oyo Inland Wharf Project (captured via Record ID#72815). The loan for Phase 1, which was finalized on March 29, 2013, carried a 13-year maturity. Its interest rate and grace period are unknown. Its (principal) amount outstanding was $41,936,000 as of December 31, 2019. The loan for Phase 2 carried a 27-year maturity. Its interest rate and grace period are also unknown. Its (principal) amount outstanding was $14,974,873 as of December 31, 2019. The Oyo Inland Wharf Project, which was implemented in two phases, involved the construction of a passenger terminal (measuring 194 meters in length), freight terminal (measuring 200 meters in length), a protective dike (measuring 100 meters in length), a passenger station, a parking lot, storage space, and an access road. The wharf was equipped with 2 cranes for loading and unloading boats, 12 bollards for mooring boats, and 1 machine for handling 40-foot containers. The project also involved the installation of a drinking water terminal and dockside terminals for boats to access electricity connections. The project site occupied an area of about 90900 m2, and the wharf measured 494 meters in length. Upon completion, it was envisaged that the Oyo Inland Wharf (also known as the Oyo River Port) would facilitate the movement of people and goods from the town of Oyo and the capital city of Brazzaville as well as the cities of Kinshasa and Kisangani in the Democratic Republic of Congo. China Bridge and Road Corporation (CRBC) — a subsidiary of China Communications Construction Company Limited (CCCC) — was the contractor responsible for the implementation of both phases. Construction formally began on August 21, 2013, and the wharf was officially opened on August 10, 2017. The project employed 625 Chinese and Congolese workers.

Staff comments

1. This project is also known as Phase 1 of the Oyo River Port Project. The Chinese project title is 奥约港项目 or OYO内河码头项目. The French project title is Construction Port Fluvial d'OYO Phase 1. 2. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it identifies a single $55 million China Eximbank loan for the Oyo Inland Wharf Construction Project. AidData records the two separate China Eximbank loans for Phase 1 and Phase 2 of the Oyo Inland Wharf Construction Project that are recorded by the Republic of Congo’s Public Debt Agency (Caisse Congolaise d’Amortissement or CCA) and Délégation Générale des Grands Travaux (DGGT). These two loans are collectively worth $85,365,890.92. CCA and DGGT also report loan maturity lengths that are inconsistent with the 20-year maturity length reported by SAIS-CARI.