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Overview

[Sino-Congolese Programme] China Eximbank provides $5.6 million loan for Electricity Generator Acquisition Project (Linked to Record ID#450)

Commitment Year•2011Country of Activity•Democratic Republic of the CongoDirect Recipient Country of Incorporation•Democratic Republic of the CongoSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 9, 2011
Start (actual)
Apr 1, 2013
End (actual)
Feb 14, 2014
First repayment
Jul 6, 2021
Last repayment
Jul 2, 2036

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Sino-Congolais des Mines (Sicomines SARL)

Implementing agencies

State-owned companies

  • China Railway Group Limited (CREC)

Guarantors

Government Agencies

  • Government of Democratic Republic of Congo

Collateral providers

Joint Venture/Special Purpose Vehicles

  • Sino-Congolais des Mines (Sicomines SARL)

Loan desecription

[Sino-Congolese Programme] China Eximbank provides $5.6 million loan for Electricity Generator Acquisition Project

Grace period•10 yearsGrant element•48.1595%Interest rate (t₀)•3.839%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•25 years

Collateral

Subsidiary (buyer's credit) loan agreements under the master loan (facility) agreement were underpinned by the following source of collateral: the mining rights and titles of SICOMINES SARL, including its rights and titles to the copper and cobalt deposits of Dikuluwe, Mashamba West, Junction D, Cuvette Dima, Cuvette Mashamba and Syncline Dikuluwe Colline D. The borrower was expected to repay the lender with revenues (export receipts) generated by a copper and cobalt mine at Kolwezi (owned by SICOMINES SARL).

Narrative

Full Description

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 $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.

Staff comments

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 Record 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. 5. Given that AidData has captured the entire $3.003 billion China Eximbank loan commitment amount for multiple infrastructure projects via Record ID#450, it does not record a financial commitment (transaction) amount for the subsidiary loan supporting this project to avoid double-counting.