[Sino-Congolese Programme] China Eximbank provides $21 million loan for 2.8 km Lutendele Road Refurbishment 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 the 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'dit. 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). This 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.

Additional details

1. The French project title is Modernisation de la Route Lutendele. The Chinese project title is 卢当德里路.

Number of official sources

13

Number of total sources

18