[Sino-Congolese Programme] China Eximbank provides $10 million loan for 100 km Bunagana-Rutshuru-Goma Road Rehabilitation and 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 this 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’ line of credit. One of the subsidiary loans issued as part of the 'Sino-Congolese Programme' was a $10 million loan for the 100 km Bunagana-Rutshuru-Goma Road Rehabilitation and Modernization Project. The loan ultimately achieved a disbursement rate of 100% ($10 million out of $10 million) This project involved the rehabilitation of the 100 km Bunagana-Rutshuru-Goma section of the National Road (RN2) in North Kivu Province. Sinohydro 13 — a subsidiary of Sinohydro — was the contractor responsible for project implementation. It was awarded a $10 million contract (ID#ACGT/DG/014/2015) on August 17, 2015. Construction began on November 5, 2016, and the project was officially completed and handed over to the Congolese authorities on July 18, 2019. The project’s originally scheduled completion date was April 18, 2018.

Additional details

1. The French project title is Projet de Réhabilitation et Modernisation de la Route Bunagan-Rutshuru-Goma (100KM) or Réhabilitation de la Route Bunagana-Rutshuru-Goma (100KM).

Number of official sources

9

Number of total sources

14