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Overview

[Sino-Congolese Programme] China Eximbank provides $13 million loan for Phase 1 of the 55.5 km Bukavu-Nyangezi-Kamanyola-Uvira Segment of Route Nationale 5 (RN5) Construction and Modernization Project (Linked to Record ID#450 and #85310)”

Commitment Year•2010Country of Activity•Democratic Republic of the CongoDirect Recipient Country of Incorporation•Democratic Republic of the CongoSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 22, 2010
Start (actual)
Nov 5, 2011
End (planned)
Jul 5, 2013
End (actual)
Apr 15, 2018
First repayment
Dec 30, 2019
Last repayment
Dec 26, 2034

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project involved the construction and modernization of a 55.5 km road between the town of Bukavu and the town of Uvira in North Kivu Province (PK 0 to PK 5). The road also connects the cities of Uvira and Kamanyola, which are border towns near Rwanda and Burundi and important areas for agricultural production. More detailed locational information can be found at https://www.dropbox.com/s/17vj39iersx0b1i/drc-china%20infrastructure%20status%20march%202011.pdf?dl=0 and https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-3.406%2C29.138%3B-2.740%2C29.002#map=10/-3.0730/29.0825

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 ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Sino-Congolais des Mines (Sicomines SARL)

Implementing agencies

Private Sector

  • CIMA

State-owned companies

  • Sinohydro Corporation Limited

Guarantors

Government Agencies

  • Government of Democratic Republic of Congo

Collateral providers

Joint Venture/Special Purpose Vehicles

  • Sino-Congolais des Mines (Sicomines SARL)

Loan desecription

[Sino-Congolese Programme] China Eximbank provides $13 million loan for Phase 1 of the 55.5 km Bukavu-Nyangezi-Kamanyola-Uvira Segment of Route Nationale 5 (RN5) Construction and Modernization Project

Grace period•10 yearsGrant element•48.1595%Interest rate (t₀)•3.839%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•25 years

Collateral

Subsidiary (buyer's credit) loan agreements under the master loan (facility) agreement were underpinned by the following source of collateral: the mining rights and titles of SICOMINES SARL, including its rights and titles to the copper and cobalt deposits of Dikuluwe, Mashamba West, Junction D, Cuvette Dima, Cuvette Mashamba and Syncline Dikuluwe Colline D. The borrower was expected to repay the lender with revenues (export receipts) generated by a copper and cobalt mine at Kolwezi (owned by SICOMINES SARL).

Narrative

Full Description

Project narrative

In 2008, China Eximbank issued a $3.003 billion general buyer's credit loan to Sino–Congolais des Mines (Sicomines SARL) — a joint venture — to finance infrastructure projects in the DRC (as captured via Record ID#450). All subsidiary borrowings under the (government-guaranteed) general buyer's credit loan agreement were to be repaid with revenues from mining projects managed by Sicomines SARL. Each subsidiary loan carried a maturity of 25 years, a grace period of 10 years, and an interest rate of 6-month LIBOR plus a 1% margin (or 3.839% at the time of the agreement). All infrastructure projects supported through the general buyer's credit loan were part of the so-called “Sino-Congolese Programme." One of the subsidiary loans issued as part of the ‘Sino-Congolese Programme’ was a $13 million loan for the 55.5 km Bukavu-Nyangezi-Kamanyola-Uvira Segment of Route Nationale 5 (RN5) Construction and Modernization Project. The loan ultimately achieved a disbursement rate of 100% ($13 million out of $13 million). The project involved the construction and modernization of a 55.5 km road between the town of Bukavu and the town of Uvira in North Kivu Province. The road also connects the cities of Uvira and Kamanyola, which are border towns near Rwanda and Burundi and important areas for agricultural production. Sinohydro 14 and CIMA International were the contractors responsible for implementation and their work was overseen by DRC's Agence Congolais des Grands Travaux. Sinohydro 14 and CIMA International were awarded a $13 million contract (ID#ACGT/DG/001/2014) on April 8, 2015. The contract was amended on August 28, 2015. Construction began on November 5, 2011 and the project was originally expected to last 20 months (July 5, 2013 estimated completion date). The project was provisionally completed on March 14, 2017 and formally completed on April 15, 2018.

Staff comments

1. This project is also known as the RN5 Bukavu-Ngangezi-Kamanyola Upgrade project. The French project title is Travaux du Projet d'Asphaltage de la route Bukavu-Kamanyola or Projet de Construction et Modernisation de la RN5 : Bukavu-Nyangezi-Kamanyola-Uvira/Lot1 : Bukavu - Nyangezi - Kamanyola (55,50 Km). 2. The project was carried out in 2 phases: 5km of the RN5 in Phase 1 and 50km of the RN5 in Phase 2. Phase 2 is captured via Record ID#85310. 3. One source suggests that the project’s originally scheduled completion date was March 14, 2017. This issue warrants further investigation. 3. Given that AidData has captured the entire $3.003 billion China Eximbank loan commitment amount for multiple infrastructure projects via Record ID#450, it does not record a financial commitment (transaction) amount for the subsidiary loan supporting this project to avoid double-counting.