[Sino-Congolese Programme] China Eximbank provides $284.6 million loan for Phase 2 of Lwambo-Mitwaba-Manono-Kalemie Road Rehabilitation Project (Linked to Project ID#450, #59228)

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 $284,681,120 loan for Phase 2 of Lwambo-Mitwaba-Manono-Kalemie Road Rehabilitation Project. 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 2 involved the asphalting and rehabilitation of a 294.52 km section along the 466.12 km Lwambo-Mitwaba-Manono-Kalemie Road. China Railway Engineering Corporation (CREC) was awarded to be contractor responsible for project implementation on August 17, 2015. Construction began on October 6, 2015 and this project was provisionally completed on January 19, 2018.

Additional details

1. The French project title is Projet d’Asphaltage et Modernisation de la Route Lwambo-Mitwaba-Manono-Kalemie. 2. This loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. 3. Phase 1 of the Lwambo-Mitwaba-Manono-Kalemie Road Rehabilitation Project is captured via Project ID#59228.

Number of official sources

9

Number of total sources

11