Overview

[Sino-Congolese Programme] China Eximbank provides $29.3 million loan for 6.8 km Avenue du Tourisme Rehabilitation 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•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2009

Start (actual): Jan 10, 2009

End (planned): Aug 30, 2011

End (actual): Feb 26, 2013

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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Avenue du Tourisme is located in Kinshasa. More detailed locational information can be found at https://www.openstreetmap.org/way/4638860

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

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 $29.3 million loan for 6.8 km Avenue du Tourisme 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 $$29,344,191.97 loan for the the 6.8 km Avenue du Tourisme Rehabilitation Project. The loan ultimately achieved a disbursement rate of 100% ($29,344,191.97 out of $24,368,749.30). This project involved construction of a 2x1-lane carriageway, construction of the sidewalks, and construction of sanitation works (gutters) and engineering structures (bridges, culverts and nozzles) along the 6.8 km Avenue du Tourisme in Kinshasa. It was part of a broader opening up of neighborhoods and cities in the city of Kinshasa. The Mimoza and Pompage districts were cut off from the surrounding populations. Residents did not have easy access to the nearest shopping center, Kintambo Magasin, or to the rest of the city of Kinshasa. China Railway Engineering Corporation (CREC) was the contractor responsible for implementation. It was awarded a $24,368,749.30 contract on June 28, 2008. A $4,975,442.67 contract amendment was subsequently issued to pay for cost overruns. Construction began on January 10, 2009 and the project was completed on February 26, 2013. The project’s originally scheduled completion date was August 30, 2011.

Staff comments

1. The French name for this project is Modernisation de l'avenue Tourisme. 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.