[Sino-Congolese Programme] China Eximbank provides $33.8 million loan for 15 km Butembo Crossing Modernization Project (Linked to Project ID#450)

In 2008, China Eximbank issued a $3 billion line of credit to Sino–Congolais des Mines (Sicomines SARL) — a joint venture — to finance infrastructure projects in the DRC (see Project ID#450). All borrowings through this line of credit (framework agreement) are repaid with revenues from mining projects managed by Sicomines SARL. Each subsidiary loan issued through the line of credit carries 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). The infrastructure projects that are supported by the line of credit are collectively referred to as the 'Sino-Congolese Programme'. The Government of Democratic Republic of Congo issued a sovereign guarantee for all infrastructure loans approved through the 'Sino-Congolese Programme’. One of the subsidiary loans issued as part of the ‘Sino-Congolese Programme’ was a $33,859,673.85 loan for the 15 km Butembo Crossing Modernization Project. The loan ultimately achieved a disbursement rate of 100%. This project involved construction of a 15 km road (or “crossing”) between the town of Butembo and the town of Beni in North Kivu Province. It was implemented in two phases. The project was part of the modernization of major arteries in the various provinces of the DRC. The 15 km road provides a quick and direct connection between the town of Butembo, which is a large shopping center, and the town of Beni. The latter city is also a major relay center for the city of Kasindi on the border with Uganda. Sinohydro 14 was the contractor responsible for implementation. It was awarded a $22,859,673.85 contract for Phase 1 on an unknown date. It was awarded an $11 million contract (ID#ACGT/DG/013/2015) for Phase 2 on August 1, 2015. Phase 1 construction activities began on February 2, 2011. Phase 1 was originally expected to reach completion date on March 2, 2012. Phase 2 construction began on May 17, 2015. It was expected to reach completion on May 28, 2016. The project reached provisional acceptance on May 28, 2016, and was officially completed on June 5, 2017.

Additional details

1. This project is also known as the Butembo Municipal Road Project. The French project title is Construction Route revêtue RN2: Traversée ville de Butembo (15 Km) or Projet de Modernisation de la Traversée de Butembo or Traversée de Butembo. The Chinese project title is 布腾博市政道路工程.

Number of official sources

13

Number of total sources

17