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

Project narrative

In 2008, China Eximbank issued a $3.003 billion general buyer's credit loan to Sino–Congolais des Mines (Sicomines SARL) — a joint venture — to finance infrastructure projects in the DRC (as captured via Record ID#450). All subsidiary borrowings under the (government-guaranteed) general buyer's credit loan agreement were to be repaid with revenues from mining projects managed by Sicomines SARL. Each subsidiary loan carried 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). All infrastructure projects supported through the general buyer's credit loan were part of the so-called “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%. The 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.