Overview

[Sino-Congolese Programme] China Eximbank pledges $10 million loan for Komanda-Bunia-Mahagi Road Rehabilitation Project (Linked to Record ID#450)

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

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2015

First repayment: Dec 29, 2024

Last repayment: Dec 26, 2039

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)

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 pledges $10 million loan for Komanda-Bunia-Mahagi Road Rehabilitation Project (Linked to Record ID#450)

Grace period•10 yearsGrant element•68.2941%Interest rate (t₀)•1.3628%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 that was slated for issuance through the “Sino-Congolese Programme” was a $10 million loan for the Komanda-Bunia-Mahagi Road Rehabilitation Project. This project involves the rehabilitation of 265 km Komanda-Bunia-Mahagi Road. It was listed as a possible project under the “Sino-Congolese Programme” in a 2015 Plan Strategique de Developpement by Agence Congolaise des Grands Travaux (ACGT). However, it is not identified in the 2017 or 2018 annual reports of ACGT.

Staff comments

1. It does not appears that a loan has been officially committed for this project, so AidData has status-coded it as a pledge for the time being. 2. 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.