China Development Bank pledges 370 million USD for Mengo Potash Project
Pledged amount
$ 417373524.31023896
Adjusted pledged amount
$ 417373524.31023896
Constant 2021 USD
Not recommended for aggregates
This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Congo (Brazzaville)
Sector
Industry, mining, construction (Code: 320)
Flow type
Loan
Level of public liability
Unallocable
Infrastructure
No
Category
Project lifecycle
Description
In November 2013, CDB sent a letter of commitment to MagIndustries Corp. (a Canadian potash mining company that is majority owned by China-based Evergreen Holding Group), pledging to arrange a syndicated loan worth up to $740 million, with a maturity of 12 years. CDB offered to provide up to $370 million as the lead arranger of the syndicated loan. The Mengo Potash Project later became ensnared in a corruption investigation when an accountant at MagIndustries Corp. reported to the Canadian authorities that his company was offering bribes to Congolese officials. The Mengo deposit, about 15 kilometers (9.3 miles) northeast of the port city of Point-Noire, is reportedly capable of producing 1.2 million metric tons of the fertilizer annually.
Additional details
The Chinese project title is 中国武夷刚果（布）公司钾肥项目 or 浙江春和集团蒙哥钾盐项目.
Number of official sources
2
Number of total sources
9
Details
Cofinanced
Yes
Implementing agencies [Type]
East China Engineering Science & Technology Co., Ltd [State-owned Company]
China National Complete Plant Import & Export Corporation Group (COMPLANT) [State-owned Company]
MagIndustries Corp. [Private Sector]
Loan Details
Maturity
12 years