[Sino-Congolese Programme] China Eximbank provides $6 million loan for Kabondo-Dianda-Mukwende Earth Road Rehabilitation Project (Linked to Record ID#450)

Project narrative

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 Record 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 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 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. This 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. A construction contract was signed on August 17, 2015. Then, on November 7, 2018, construction began. In December 2021, the road passed the provisional acceptance crtieria after an evaluation, meaning the project has been completed.