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Overview

[Sino-Congolese Programme] China Eximbank provides $30 million loan for Phase 1 of Lwambo-Mitwaba-Manono-Kalemie Road Rehabilitation Project (Linked to Record ID#450, #59245)

Commitment Year•2015Country of Activity•Democratic Republic of the CongoDirect Recipient Country of Incorporation•Democratic Republic of the CongoSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 17, 2015
Start (actual)
Oct 6, 2015
End (planned)
Jan 15, 2018
End (actual)
Apr 2, 2019
First repayment (originally scheduled)
Aug 14, 2025
Last repayment (originally scheduled)
Aug 10, 2040

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project involved the asphalting and rehabilitation of a 171.6 km section along the 466.12 km Lwambo-Mitwaba-Manono-Kalemie Road. It also involved the construction of three bridges: Pont Benkeni, Pont Dikulwe, and Pont Kyubo. More detailed locational information can be found at https://www.dropbox.com/s/17vj39iersx0b1i/drc-china%20infrastructure%20status%20march%202011.pdf?dl=0 and https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-10.813%2C26.742%3B-5.912%2C29.191#map=11/-10.8569/26.7181

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Sino-Congolais des Mines (Sicomines SARL)

Implementing agencies

Government Agencies

  • Government of Democratic Republic of Congo

State-owned companies

  • China Railway Engineering Corporation (CRECG)

Guarantors

Government Agencies

  • Government of Democratic Republic of Congo

Collateral providers

Joint Venture/Special Purpose Vehicles

  • Sino-Congolais des Mines (Sicomines SARL)

Loan desecription

[Sino-Congolese Programme] China Eximbank provides $30 million loan for Phase 1 of Lwambo-Mitwaba-Manono-Kalemie Road Rehabilitation Project

Grace period•10 yearsGrant element•48.1595%Interest rate (t₀)•3.839%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•25 years

Collateral

Subsidiary (buyer's credit) loan agreements under the master loan (facility) agreement were underpinned by the following source of collateral: the mining rights and titles of SICOMINES SARL, including its rights and titles to the copper and cobalt deposits of Dikuluwe, Mashamba West, Junction D, Cuvette Dima, Cuvette Mashamba and Syncline Dikuluwe Colline D. The borrower was expected to repay the lender with revenues (export receipts) generated by a copper and cobalt mine at Kolwezi (owned by SICOMINES SARL).

Narrative

Full Description

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 $30 million loan for Phase 1 of Lwambo-Mitwaba-Manono-Kalemie Road Rehabilitation Project. The loan ultimately achieved a disbursement rate of 97% ($29,234,2013.57 out of $30 million). The Lwambo-Mitwaba-Manono-Kalemie Road Rehabilitation Project involved the paving and modernization of 466.12 km of roads in Haut Katanga, Haut Lomami and Tanganyika provinces (including the development of the road network in Bunkeya, Benkeni Bridge located at PK 45+145, Dikulwe bridge: located at PK 107+281, and Kyubo bridge located at PK 161+060). Phase 1 involved the asphalting and rehabilitation of a 171.6 km section along the 466.12 km Lwambo-Mitwaba-Manono-Kalemie Road. It also involved the construction of three bridges: Pont Benkeni, Pont Dikulwe, and Pont Kyubo. China Railway Engineering Corporation (CREC) was the contractor responsible for project implementation. It was awarded a $30 million contract (ID#ACGT/DG/002/2014) on August 17, 2015. Construction began on October 6, 2015 and ended on April 2, 2019. The project’s originally scheduled completion date was January 15, 2018.

Staff comments

1. The French project title is Projet d’Asphaltage et Modernisation de la Route Lwambo-Mitwaba-Manono-Kalemie. 2. The Rapport Annuel 2016 published by Agence Congolaise des Grands Travaux (ACGT) puts the cost of the project at $35 million. The Rapport Annuel 2017 published by ACGT puts the cost of the project at $30 million. AidData relies on the more recent of the two estimates. 3. Given that AidData has captured the entire $3.003 billion China Eximbank loan commitment amount for multiple infrastructure projects via Record ID#450, it does not record a financial commitment (transaction) amount for the subsidiary loan supporting this project to avoid double-counting. 3. Phase II of the Lwambo-Mitwaba-Manono-Kalemie Road Rehabilitation Project is captured via Record ID#59245. 4. One source suggests that this project reached completion on November 20, 2017. This issue warrants further investigation.