China Eximbank provides $298.88 million preferential buyer’s credit for Kinsuka 220KV Substation and Associated Distribution Networks Project (Linked to Record ID#460)

Project narrative

On October 28, 2018, China Eximbank and the Government of the Democratic Republic of Congo signed a $298,880,000 preferential buyer’s credit (PBC) agreement [CHINA EXIMBANK PBC NO (2018) TOTAL NO 480] for the Kinsuka 220KV Substation and Associated Distribution Networks Project (captured via Record ID#59085). The PBC (loan), which was on-lent to Société Nationale d’Electricité (SNEL), carries the following borrowing terms: a 20 year maturity, a 7 year grace period, a 2% interest rate, and a 0.75% commitment fee. The loan's (principal) amount outstanding was $52,743,617.40 in 2021 and $85,915,703.90 2022. The purpose of the project was to evacuate power from the 150MW Zongo II Hydroelectric Dam, which was financed through a separate China Eximbank PBC (as captured via Record ID#460). The project involved the construction of the 220KV substation in Kinsuka commune and associated medium and low voltage distribution networks in the west of Kinshasa (in the municipalities of Mont Ngafula and Ngaliema). Shanghai Electric Group was the general EPC contractor responsible for implementation. Taichang Electric and Société Nationale d’Electricité (SNEL) were also involved in project implementation. A formal groundbreaking ceremony took place on July 27, 2021. However, construction reportedly began several months earlier in April 2021. By May 2023, the project was nearing completion and China's Ambassador to the DRC announced that Kinsuka substation would transmit power to nearly two million residents in the capital Kinshasa (approximately 6 months before DRC President Tshisekedi would stand for re-election). The project was ultimately completed and the substation was officially inaugurated on November 13, 2023. President Felix Tshisekedi was re-elected in December 2023.