[Sino-Congolese Programme] China Eximbank provides $10 million loan for 70 km Kikwit-Idiofa Road Rehabilitation and Modernization Project (Linked to Record ID#450)

Project narrative

In 2008, China Eximbank issued a $3.003 billion general buyer's credit loan to Sino–Congolais des Mines (Sicomines SARL) — a joint venture — to finance infrastructure projects in the DRC (as captured via Record ID#450). All subsidiary borrowings under the (government-guaranteed) general buyer's credit loan agreement were to be repaid with revenues from mining projects managed by Sicomines SARL. Each subsidiary loan carried 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). All infrastructure projects supported through the general buyer's credit loan were part of the so-called “Sino-Congolese Programme." 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. The project was ultimately completed on February 9, 2021.