Project ID: 447

China Eximbank provides RMB 200 million government concessional loan for the Loutété Cement Factory Reconstruction Project

Commitment amount

$ 51091411.96

Constant 2017 USD

Summary

Funding agency [Type]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Congo

Sector

Industry, mining, construction (Code: 320)

Flow type

Loan

Concessional

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 year

2003

Description

On July 28, 2000, the Chinese Government and the Republic of Congo signed a preferential loan framework agreement regarding the Loutété Cement Factory Reconstruction Project. Then, in 2003, the Export-Import Bank of China Eximbank provided a RMB 200,000,000 government concessional loan (GCL) for the Loutété Cement Factory Reconstruction Project in 2003. This loan carried an interest rate of 2%. With the proceeds from this loan, a new public cement company called Société Nouvelle des Ciments du Congo (SONOCC) was established. SONOCC was a joint venture between Société Nationale Chinoise de Travaux de Ponts et Chaussées (SNCTPC) (56% equity) and the Republic of Congo (44% equity). The Loutété cement factory reconstruction project — under the ownerships of SONOCC — began in 2003. The cement plant began production by 2004. It ultimately achieved an annual cement production capacity of about 200,000 tons. CRBC was the contractor responsible for project implementation.

Additional details

This project is referred to as the Loutete Cement Factory Project in the Chinese Government’s 2011 White Paper on Foreign Aid. The Chinese project title is 的鲁特特水泥 or 鲁特特水泥厂恢复生产项目 or 中国鲁特特水泥厂 or 刚果(布)新水泥厂 or 刚果(布)鲁特特水泥厂恢复生产项目. The French project title is Modernisation de la cimenterie de Loutété. SNCTPC is the French name for China Road and Bridge Corporation (CRBC). It is not clear if the borrower of this China Eximbank loan was the Republic of Congo or SONOCC. This issue merits further investigation. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not identify the interest rate of the China Eximbank loan that supported this project. AidData records the interest rate (2%) that is reported by China’s Ministry of Commerce (MOFCOM).

Number of official sources

9

Number of unofficial sources

13

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Details

Cofinanced

No

Receiving agencies [Type]

Société Nouvelle des Ciments du Congo (SONOCC) [Joint Venture/Special Purpose Vehicle]

Implementing agencies [Type]

China Road & Bridge Corporation (CRBC) [State-owned Company]

Loan type

Concessional

Interest rate

2.0%

Gurarantee provided

No

Insurance provided

No