[Sino-Congolese Programme] China Eximbank provides $93.2 million loan for asphalting of the Lubumbashi-Kasomeno Section of the RN5 National Road Project (Linked to Project ID#450, #59441)

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’. One of the subsidiary loans issued (on June 28, 2008) as part of the ‘Sino-Congolese Programme was a $93,210,305.71 loan for the asphalting of the Lubumbashi-Kasomeno Section of the RN5 National Road Project. The loan ultimately achieved a disbursement rate of 99.51% ($92,755,516.93 out of $93,210,305.71). This project involved the asphalting and grading of the national road RN5 between Lubumbashi and Kasomeno in Katanga Province. The Lubumbashi–Kasomeno road section measures 137 km in length. CREC7 — a subsidiary of China Railway Engineering Corporation (CREC) — was the contractor responsible for implementation. It was awarded a $87,526,278.38 contract on June 28, 2008. A $5,684,027.33 contract amendment was subsequently issued to pay for cost overruns. Construction began on February 28, 2009. The road was officially completed and handed over to the Congolese authorities on December 17, 2016. The project’s originally scheduled completion date was May 10, 2016.

Additional details

1. The French project name is Projet de bitumage de la route Lubumbashi-Kasomeno. 2. Project ID#59441 captures the grading of the Lubumbashi-Kasomeno Section of the RN5 National Road Project.

Number of official sources

15

Number of total sources

20