[Sino-Congolese Programme] China Eximbank provides $21 million loan for 2.8 km Lutendele Road Refurbishment Project (Linked to Record ID#450)

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 $21,007,915.30 loan for the 2.8 km Lutendele Road Refurbishment Project. The loan ultimately achieved a disbursement rate of 91.5% ($19,240,627.17 out of $21,007,915.30). The project involved the refurbishment of the 2.8 km Route Lutendele in Kinshasa. The purpose of this project is connect the districts of Mbudi, Mazal and Lutendele to Pompage and to the Kintambo Magasin shopping center. China Railway Engineering Corporation (CREC) was the contractor responsible for implementation. It was awarded a $20,280,743 contract on June 28, 2008. A $727,172.30 contract amendment was subsequently issued to pay for cost overruns. Project implementation commenced on June 10, 2009. The project reached completion on February 26, 2013. The project’s originally scheduled completion date was August 30, 2011.