[Sino-Congolese Programme] China Eximbank provides $6 million loan for Kabondo-Dianda-Mukwende Earth Road Rehabilitation 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 $6 million loan for the Kabondo-Dianda-Mukwende Earth Road Rehabilitation Project. As of 2020, the loan had achieved a disbursement rate of 78% ($4,675,992.11 out of $6,000,000). The project involved the widening and construction of an overture for the 350 km Kabondo-Dianda-Mukwende earth road within Haut-Lomami Province. CREC 7 — a subsidiary of China Railway Engineering Corporation (CREC) — was the contractor responsible for project implementation. It was awarded a $6 million contract (ID#ACGT/DG/-12/2015) on August 17, 2015. Then, on November 8, 2018, construction began. In December 2021, the road passed the provisional acceptance criteria after an evaluation, meaning the project has effectively reached completion.

Additional details

1. The French name for this project is Projet de réhabilitation de la route Kabondo-Dianda-Mukwende (350 Km) or Ouverture de la Route Kabondo Dianda-Mukwende (350 km).

Number of official sources

9

Number of total sources

13