Project ID: 31030

China Eximbank provides RMB 400 million government concessional loan for Mpila High School and Middle School Construction Project

Commitment amount

$ 73383902.56886427

Adjusted commitment amount

$ 73383902.57

Constant 2021 USD

Summary

Funding agency [Type]

Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]

Recipient

Congo (Brazzaville)

Sector

Education (Code: 110)

Flow type

Loan

Level of public liability

Central government debt

Financial distress

Yes

Infrastructure

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

ODA-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2013-03-29

Actual complete

2017-10-06

Geography

Description

On March 29, 2013, China Eximbank and the Republic of Congo signed an RMB 400 million government concessional loan (GCL) agreement for the Mpila High School and Middle School Construction Project. This loan reportedly carried the following borrowing terms: 19-year maturity and 5-year grace period. The purpose of this project was to construction the Revolution Olilou-Gampo school complex, which is located in Ouenzé in the 5th district of Brazzaville. The complex includes two separate administrative blocks for the high school and the middle school. These blocks consist of an amphitheater with 364 seats; a library with an adjoining reading room; a multimedia center; a medical room; meeting rooms; multipurpose rooms; catering areas; 40 offices; three teachers' rooms; toilet blocks; twelve laboratory rooms equipped for languages, physics, chemistry and life and earth sciences; a 3000 seat modern gymnasium, a football field; roads; three electricity generators for the high school, college, and gymnasium; and a water well supplying four water tanks. The complex also includes seven school buildings — three for the high school and four for the middle school. The school complex can accommodate 10,000 students. Weihai International Economic & Technical Cooperative Co., Ltd (WIETC) was the contractor responsible for implementation. Construction began in 2013. A project completion ceremony took place on October 6, 2017 and the school subsequently ushered in the first batch of students. There are some indications that the China Eximbank loan for the Mpila High School and Middle School Construction Project may have financially underperformed vis-a-vis the original expectations of the lender. In 2020, China Eximbank and the Republic of Congo signed a debt suspension agreement as part of the G-20 Debt Service Suspension Initiative (DSSI). Under the terms of the agreement, the lender agreed to suspend principal and interest payments due between May 1, 2020 and December 31, 2020 under multiple buyer’s credit loan (BCL) agreements and multiple government concessional loan (GCL) agreements (as captured via Project ID#95566 and ID#95571). Debt service payments under many of these loan agreements were again deferred in 2021 (as captured via Project ID#95573, 95572, 95570, and 95568). The IMF assessed the Republic of Congo to be in debt distress in 2021, 2022, and 2023.

Additional details

1. This project is also known as the Revolution-Gampo-Ollilou Complex Construction Project. The Chinese project title is 姆皮拉中学 or 姆皮拉学校非运会体育馆 or 刚果(布)姆皮拉学校项目. The French project title is Projet de reconstruction et de modernisation de Mpila-Ouenzé or Le complexe Révolution-Gampo-Ollilou or Construction complexe de MPILA or Lycée Moderne de la Révolution. 2. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in the Republic of Congo was 1.4846% in 2013. AidData estimates the interest rate of the China Eximbank loan that supported the Mpila High School and Middle School Construction Project by using this figure. See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0

Number of official sources

8

Number of total sources

13

Download the dataset

Details

Cofinanced

No

Direct receiving agencies [Type]

Government of Republic of Congo [Government Agency]

Implementing agencies [Type]

Weihai International Economic & Technical Cooperative Co., Ltd (WIETC) [State-owned Company]

Loan Details

Maturity

19 years

Interest rate

1.4846%

Grace period

5 years

Grant element (OECD Grant-Equiv)

42.1926%

Bilateral loan

Government Concessional Loan

Investment project loan