China Eximbank provides $301 million preferential buyer’s credit for N’djili Airport Terminal Construction Project

On November 26, 2019, China Eximbank and the Government of the Democratic Republic of Congo signed a $301,098,000 preferential buyer’s credit (PBC) agreement for the N’djili Airport Terminal Construction Project. The borrowing terms of the PBC are as follows: a 20 year maturity, 7 year grace period, 2% interest rate, and 0.75% commitment fee. The loan is reportedly secured by (collateralized against) revenues that will be generated by an airport tax (called “GoPass”). The borrower is expected to use the proceeds of the PBC to finance approximately 85% of the cost of a $354,680,000 commercial (EPC) contract between Régie des Voies Aériennes de la République Démocratique du Congo) (RVA) and Weihai International Economic & Technical Cooperative Co., Ltd. (WIETEC), which was signed on September 16, 2013. The purpose of the project is to construct a new airport terminal — with an area of 40,617 m2 including a ground floor for arrivals — at N'djili International Airport in Kinshasa. The project also involves the installation of check-in counters, arrival and departure baggage rooms, public areas, shopping centers, a foundation, and a parking lot (with the ability to accommodate 1200 vehicles). WIETEC is the EPC contractor responsible for implementation. A foundation-laying ceremony took place on May 2, 2018. As of May 2020, the DRC’s Minister of Transport Didier Mazengu Mukanzu reported to Parliament that the project’s technical and topographical studies and feasibility studies were 80% complete. By September 2020, the project design process was complete and implementation was expected to start by the end of 2020. As of December 2020, all of the necessary materials and equipment were on-site to begin construction but project implementation had stalled due to the fact that the Congolese Government had not met its counterpart funding commitment. China Eximbank was also withholding loan disbursements. In August 2021, Alphonse Shungu, the Director General of the RVA, reported that the project had only achieved a 9.21% completion rate. Then, in 2021 and 2021, Qatar Airways Group (QAG) reportedly prepared a major contract for the renovation and management of three strategic airports in the DRC: N'djili International Airport, Ndolo Airport and Lubumbashi Airport. The feasibility studies were entrusted to the Dutch company NACO, which specializes in airport infrastructure. The two parties, who signed a memorandum of understanding in March 2021, agreed on a public-private partnership (PPP) under which QAG would shoulder the cost of renovating and updating the three airports on its own, in exchange for managing it for an unspecified length of time (perhaps as long as thirty years). Under these terms, RVA would no longer manage these airports, depriving it of the bulk of its revenues, especially of the highly controversial ‘go-pass’ tax that travelers have to pay. Also, as of September 2022, the Congolese Government was reportedly looking to end its partnership with Weihai International Economic & Technical Cooperative (WIETC) for the construction of the new N'djili airport.

Additional details

1. Some sources refer to this project as the N’djili and Luano Airport Terminals Project, noting that the cost of constructing the new N’djili Airport Terminal is $354,680,000 and the cost of constructing the new Luano Airport Terminal is $201,131,205. It is unclear if China Eximbank or another financier is supporting the construction of the Luano Airport Terminal. This issue warrants further investigation. 2. The World Bank’s Debtor Reporting System (DRS) records $602,196,254 of borrowing by the Government of the Democratic Republic of Congo from official sector lenders from China in 2019. However, for the time being, AidData only records a single borrowing (for the $301,098,000 PBC for the N’djili Airport Terminal Construction Project) in 2019. This discrepancy merits further investigation. 3. The Chinese project title is 的金沙萨国际机场航站楼项目 or 金沙萨恩吉利国际机场航站楼现代化项目 or 金沙萨恩吉利机场新建航站楼和配套工程. The French project title is Projet de construction et équipement de la nouvelle aérogare de l’aéroport de N’djili. 4. N’djili Airport is also known as N'Djili International Airport and Kinshasa International Airport. Luano Airport is also known as Lubumbashi International Airport.”

Number of official sources

11

Number of total sources

41