[Sino-Congolese Programme] China Eximbank provides $15 million loan for Phase 1 of Kalemie Road Rehabilitation and Modernization Project (Linked to Project ID#450, #85273)

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 $15 million loan for Phase 1 of the Kalemie Road Rehabilitation and Modernization Project. The loan ultimately achieved a disbursement rate of 100% ($15 million out of $15 million). Phase 1 involved the rehabilitation and modernization of roads in Kalemie (including Lumumba Boulevard) in Tanganyika Province — specifically, the PK0 to PK4 + 600 stretch of road. CREC 9 — a subsidiary of China Railway Engineering Corporation (CREC) — was the contractor responsible for project implementation. It was awarded a $10 million contract (ID#ACGT/DG/004/2015) on August 17, 2015 and a $5 million contract (ID#ACGT/DG/008/2018) on November 30, 2018. Then, on March 11, 2017, Phase 1 construction activities began. On October 27, 2020, Phase 1 was completed. The original scheduled completion date for Phase 1 was August 24, 2019.

Additional details

1. The French project title is Projet de Réhabilitation et de Modernisation de la Voirie de Kalemie. 2. Phase 2 runs from PK4 + 600 to PK12 + 167. The China Eximbank loan for Phase 2 is captured via Project ID#85273. 3. One source suggests that CREC 7, CREC 8, and CREC 9 — subsidiaries of China Railway Engineering Corporation (CREC) — are the contractors responsible for implementation for both phases.

Number of official sources

10

Number of total sources

14