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

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 Project ID#59085). The PBC (loan) 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 2022. The purpose of the project is to evacuate power from the 150MW Zongo II Hydroelectric Dam, which was financed through a separate China Eximbank PBC (captured via Project ID#460). The project involves 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 is the general EPC contractor responsible for implementation. Taichang Electric and Société Nationale d’Electricité (SNEL) are 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).

Additional details

1. This project is also known as the construction of the Kinsuka 220KV substation and associated medium and low voltage distribution networks project and the Kinsuka Substation and Associated Distribution Network Project. The French project title is Construction du poste 220KV de Kinsuka et des réseaux de distrubution moyenne et basse tension associés (pour la connexion de Zongo ll). The Chinese project title is 金苏卡变电站升级改造项目 or 金苏卡220千伏变电站及相关配网项目. 2. The China Eximbank loan that supported this project is not included in the 2020 version of the China’s Global Energy Finance database published by Boston University. 3. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, the borrowing terms of the China Eximbank loan for the Kinsuka 220KV Substation and Associated Distribution Networks Project are not identified. AidData relies on the borrowing terms recorded by the Government of the Democratic Republic of Congo (via https://dgdp-rdc.org/wp-content/uploads/2019/11/DGDP-Rapport-Annuel-2018.pdf).

Number of official sources

11

Number of total sources

30