[Sino-Congolese Programme] China Eximbank provides $10 million loan for 70 km Kikwit-Idiofa 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 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 70 km Kikwit-Idiofa Road Rehabilitation and Modernization Project. This project involves the rehabilitation of a 70 km road from Kikwit to Idiofa in Kwilu Province. Sinohydro 1 — a subsidiary of Sinohydro — was the contractor responsible for project implementation. A construction contract was signed on August 15, 2015. Then, on March 28, 2017, construction began. The expected project completion date was September 2018. As of November 2018, the project had achieved a 83.96% completion rate. Also of June 2020, the project was still unfinished, with only 63 km of the planned 70 km complete. However, it is not clear if or when this project was ever completed.

Additional details

1. This project is also known as the Ingudi-Idiofa Road Rehabilitation and Modernization Project. 2. The French project title is Projet de Réhabilitation et de Modernisation de la Route Kikwit-Idiofa (70KM).

Number of official sources

8

Number of total sources

15