[Sino-Congolese Programme] China Eximbank provides $69 million loan for Grading of the Lubumbashi-Kasomeno Section of the RN5 National Road Project (Linked to Record ID#450, #59444)

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 (on June 28, 2008) as part of the ‘Sino-Congolese Programme’ was a $69,073,563.80 loan for the Grading of the Lubumbashi-Kasomeno Section of the RN5 National Road Project. The loan ultimately achieved a disbursement rate of 100% ($69,073,565.57 out of $69,073,563.80). The project involved the grading of national road RN5 between Lubumbashi and Kasomeno in Katanga Province. The Lubumbashi–Kasomeno road section measures 137 km in length. China Railway Engineering Corporation (CREC) was the contractor responsible for implementation. It was awarded a $50,501,655.74 contract on June 28, 2008. A $18,571,908.06 contract amendment was subsequently issued to pay for cost overruns. Construction began on February 28, 2009 and the originally expected completion date was May 10, 2016. The road was officially completed and handed over to the Congolese authorities on December 17, 2016.