Overview

China Eximbank provides $54.8 million loan for 264 Mpila Social Housing Units Construction Project (Linked to Record ID#60219)

Commitments (Constant USD, 2023)$56,661,627

Commitment Year•2013Country of Activity•CongoDirect Recipient Country of Incorporation•CongoSector•Other Social Infrastructure And ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Mar 30, 2013

Start (actual): Aug 1, 2013

End (actual): Aug 1, 2016

First repayment (originally scheduled): Dec 31, 2016

Last repayment (originally scheduled): Dec 29, 2025

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

This project involved the construction of 264 housing units in the Mpila neighborhood within the capital city of Brazzaville. More detailed locational information is available at https://www.openstreetmap.org/node/3295662335.

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

Weihai International Economic & Technical Cooperative Co., Ltd (WIETC)

Collateral providers

State-owned companies

Société Nationales des Pétroles Congolais (SNPC)

Loan desecription

China Eximbank provides $54.8 million loan for 264 Mpila Social Housing Units Construction Project

Grace period•4 yearsGrant element•52.6069%Interest rate (t₀)•0.25%Interest type•Fixed Interest RateMaturity•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 June 19, 2006, China Eximbank and the Republic of Congo signed a $1.6 billion loan framework agreement — also known in the Republic of Congo as the “strategic partnership” (“partenariat stratégique”) — 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. This framework agreement (captured in Record ID#60219) was ratified on October 26, 2006. One of the subsidiary loans that was approved through the framework agreement was a $54,800,000 loan in 2013 for the 264 Mpila Social Housing Units Construction Project. As of 2014, USD 45 million had been disbursed. The loan carried a 13-year maturity and a 0.25% interest rate. Its estimated grace period was 4 years. The proceeds of the loan were to be used by the borrower to finance 85% of the cost of a $64.47 million commercial contract with Weihai International Economic & Technical Cooperative Co., Ltd (WIETC). The loan’s (principal) amount outstanding was $45,587,625 as of December 31, 2019. WIETC was the contractor responsible for implementation. This project was initiated in August 2013 and completed in August 2016.

Staff comments

1. The French project title is Construction 264 Logements sociaux. The Chinese project title is 姆皮拉住房项目. 2. The China Eximbank loan that supported this project is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. Nor is it included in the the Chinese Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020. 3. According to a 2019 report published by the Republic of Congo’s National Assembly, all loans approved under the June 19, 2006 framework agreement had grace periods between 3 and 5 years. Therefore, since the grace period of the China Eximbank loan for the 264 Mpila Social Housing Units Construction Project is missing, AidData imputes a value (4 years) at the middle of the distribution of this range as an approximation. 4. This project is separate from the RMB 310 million China Eximbank loan for the Mpila Social Housing Construction Project (captured via Record ID#68909).