[Sino-Congolese Programme] China Eximbank provides $5.6 million loan for Electricity Generator Acquisition 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 this line of credit are collectively referred to as the ‘Sino-Congolese Programme’. The Government of Democratic Republic of Congo issued a sovereign guarantee for infrastructure loans approved through the ‘Sino-Congolese Programme’ line of credit. One of the subsidiary loans issued as part of the 'Sino-Congolese Programme' was a $5,667,740 loan for an Electricity Generator Acquisition Project. The loan ultimately achieved a disbursement rate of 100% ($5,667,740 out of $5,667,740). China Railway Engineering Corporation (CREC) was the contractor responsible for implementation. It was awarded a $5,667,740 contract (ID#ACGT/DG/006/2011) on July 9, 2011. The project reached completion on February 14, 2014. CREC reportedly delivered 19 generators.

Additional details

1. The French project title is Fournitures des groupes électrogènes. 2. These generators are most likely the two generators of 630 KVA each installed in 2015 to compensate for the lack of electricity in the factory to build prefabricated houses located in Kisangani (see Project ID#59226). 3. This loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. 4. Some sources suggest that this project may have been supported by a grant rather than a loan. This issue warrants further investigation.

Number of official sources

6

Number of total sources

11