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Overview

China Eximbank provides $360 million preferential buyer’s credit for 150MW Zongo II Hydroelectric Dam Construction and a 220 kV Transmission Line Project (Linked to Record ID#59085)

Commitments (Constant USD, 2023)$409,138,973
Commitment Year•2011Country of Activity•Democratic Republic of the CongoDirect Recipient Country of Incorporation•Democratic Republic of the CongoSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 29, 2011
Start (actual)
May 16, 2012
End (planned)
Dec 31, 2015
End (actual)
Jun 22, 2018
First repayment
Jan 27, 2019
Last repayment
Jan 24, 2031

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project involved the construction of the Zongo II hydroelectric dam and the construction of a 220 kV transmission line from the dam to Kinsuka. More detailed locational information can be found at https://www.openstreetmap.org/way/848901563#map=18/-4.78256/14.90557 and https://www.openstreetmap.org/way/1028776989#map=16/-4.4599/15.2431”. The coordinates of the dam are 4˚46'14.74S, 14˚53'38.99E. More detailed locational information can be found at http://www.rccdams.co.uk/dams/zongo-ii/ and http://globalenergyobservatory.org/geoid/42631#:~:text=Zongo%20Hydroelectric%20Power%20Plant%20Democratic%20Republic%20of%20the%20Congo%20is,%2D4.7779%2C%20Longitude%3D%2014.9059..

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 Democratic Republic of Congo

State-owned companies

  • Societe Nationale d'Electricite (SNEL)

Implementing agencies

State-owned companies

  • Sinohydro Corporation Limited
  • Societe Nationale d'Electricite (SNEL)

Collateral providers

State-owned companies

  • Societe Nationale d'Electricite (SNEL)

Loan desecription

China Eximbank provides $360 million preferential buyer’s credit for 150MW Zongo II Hydroelectric Dam Construction and a 220 kV Transmission Line Project

Grace period•8 yearsGrant element•57.3156%Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•20 years

Collateral

The loan was secured with SNEL income derived from electricity sales to mining companies in Katanga Province and deposited in an escrow account ('compte séquestre'). The cash balance of the escrow account was $37.52 million as of December 31, 2022 and $37.35 million as of December 31, 2023.

Narrative

Full Description

Project narrative

On January 29, 2011, China Eximbank and the Government of the Democratic Republic of Congo signed a $360 million preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK PBC NO (2011) TOTAL NO 153] for the 150MW Zongo II Hydroelectric Dam Construction and a 220 kV Transmission Line Project. The loan carried the following borrowing terms: a 20 year maturity, an 8 year grace period, a 2% interest rate, and a 0.75% commitment fee. The proceeds of the loan were on-lent to Societe Nationale d'Electricite (SNEL). The loan was secured with SNEL income derived from electricity sales to mining companies in Katanga Province and deposited in an escrow account ("compte séquestre"). According to Government of the DRC's Aid Management Platform (AMP), the loan had disbursed $91,046,040.07 as of July 2019. The loan's (principal) amount outstanding was $360,000,000 in 2020, $330,000,000 in 2021 and $300,000,000 in 2022. The cash balance of the escrow account was $37.52 million as of December 31, 2022 and $37.35 million as of December 31, 2023. The project involved the construction of the Zongo II hydroelectric dam and the construction of a 220 kV transmission line from the dam to Kinsuka. The dam was expected to produce 150 megawatts per annum and create 2,000 jobs during its three-year construction phase. Sinohydro and Societe Nationale d'Electricite (SNEL) were jointly responsible for project implementation. At the time construction began on May 16, 2012 the project was expected to be completed in 2015, but the project was officially completed on June 22, 2018. There were additional materials supplied during 2020, including 220kV transmission line towers, insulators, ground conductors, optical cables and fittings.

Staff comments

1. This project is also known as Central Zongo II Dam, 150MW Zongo II Hydropower Station Project, and Phase 2 of the Zongo Hydroelectric Dam Project. The Chinese project title is ZONGO Ⅱ水电站实 or 宗果水电站二期 or 宗戈水电站二期 or 宗果水电站二期项目. The French project title is Construction du Barrage Zongo or Construction de la centrale hydroélectrique de ZONGO é et des Réseaux Associés. 2. China Eximbank also provided a $298.88 million preferential buyer’s credit in 2018 for the Kinsuka 220KV Substation and Associated Distribution Networks Project (as captured via Record ID#59085). The purpose of this project is to evacuate power from the Zongo II hydroelectric dam. 3. The DRC Government's Annual Public Debt Report in 2021 identifies the loan's (principal) amount outstanding as $360,000,000 as of December 31, 2021. See https://risquepays.gouv.cd/statistics/wp-content/uploads/2022/09/Rapport-annuel-de-gestion-de-la-dette-publique-2021-DGDP.pdf 4. The Congolese Government's SYGADE loan identification number is 362210202. SYGADE is the French acronym for Debt Management and Financial Analysis System (DMFAS). 5. Evidence of collateralization is provided via https://rucforsk.ruc.dk/ws/portalfiles/portal/57116566/Malm_2016_PhD_dissertation.pdf 6. The time-stamped cash balances in the escrow account are drawn from https://dgdp.cd/wp-content/uploads/2025/04/RAPPORT-ANNUELLE-version-2.pdf and https://web.archive.org/web/20250225142713/https://dgdp.cd/wp-content/uploads/2024/12/DGDP-RAPPORT-ANNUEL-2023.pdf