[Sino-Congolese Programme] China Eximbank provides $24.2 million loan for Esplanade Refurbishment at the People's Palace 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 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 $24,255,229.10 loan for the Esplanade Refurbishment at the People's Palace Project. The loan ultimately achieved a disbursement rate of 100% ($24,255,299.14 out of $24,255,229.10). The project involved the refurbishment of an esplanade at the People's Palace in Kinshasa is part of the development and modernization of public spaces in the city of Kinshasa. Located opposite the People's Palace, the 24380 square meter Esplanade site is the public space dedicated to public ceremonies and was to be modernized in order to commemorate the 50th anniversary of the independence of the DRC on June 30, 2010. Sinohydro and Weihai International Economic and Technical Cooperative Co., Ltd. were the contractors responsible for implementation. They were awarded a $19,655,229.10 contract on December 5, 2009. A $4,600,000 contract amendment was subsequently issued to pay for cost overruns. Construction began on December 6, 2009 and ended on June 30, 2010. The project’s originally scheduled completion date was August 9, 2011. The project was officially completed and handed over to the Congolese authorities on August 25, 2011.

Additional details

1. This project is also known as the Refurbishment of the 24,380 m2 Esplanade of the Palais du Peuple. The Chinese project title is 人民宫广场. 2. Some sources refer to the face value of the loan as $25,181,752.02.

Number of official sources

14

Number of total sources

21