Overview

[Sino-Congolese Programme] China Eximbank provides $24.2 million loan for Esplanade Refurbishment at the People's Palace Project (Linked to Record ID#450)

Commitment Year•2009Country of Activity•Democratic Republic of the CongoDirect Recipient Country of Incorporation•Democratic Republic of the CongoSector•Other Social Infrastructure And ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2009

Start (actual): Dec 6, 2009

End (planned): Aug 9, 2011

End (actual): Jun 30, 2010

First repayment: Dec 30, 2018

Last repayment: Dec 26, 2033

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The People's Palace is located in Kinshasa. More detailed locational information can be found at https://www.openstreetmap.org/relation/7335461#map=17/-4.33375/15.30315

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

State-owned companies

Sinohydro Corporation Limited
Weihai International Economic & Technical Cooperative Co., Ltd (WIETC)

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 $24.2 million loan for Esplanade Refurbishment at the People's Palace 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 $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.

Staff comments

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. 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.