[Sino-Congolese Programme] China Eximbank provides $57.7 million loan for Rehabilitation and Asphalting of the 66 km Beni–Luna Section of National Road 4 (RN4) 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 $57,782,941.03 loan for the Refurbishment of the 66 km Beni–Luna Section of National Road 4 (RN4) Project. The loan ultimately achieved a disbursement rate of 97.5% ($56,339,254.59 out of $57,782,941.03). The project involved the refurbishment of 66km Beni-Niania Section of National Road 4 (RN4). The road stretches from Beni in North Kivu Province to the town of Nia-Nia in Orientale Province. (Some sources indicate that the road stretches from Beni to Kisangani, via Luna, Kisangani, Banalia, Buta, Bondo, Bafwasende.) The project was divided into two ‘lots’. Weihai International Economic and Technical Cooperative Co., Ltd. (WIETC), which is known located as Société Zhengwei Technique Coopération, was the contractor responsible for Lot 1. Sinohydro was the contractor responsible for implementation of Lot 2. WIETC and Sinohydro were awarded a $57,782,941.03 contract on June 29, 2008. Construction began on June 1, 2009 and ended on November 11, 2011. The project’s originally scheduled completion date was August 31, 2010.