[Sino-Congolese Programme] China Eximbank provides loan for 14.5km l'Avenue de la Paix Rehabilitation and Modernization 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 loan (issued in 2009) for l'Avenue de la Paix Rehabilitation and Modernization Project. This project involves the rehabilitation and modernization of the 14.5 km Avenue de la Paix in the city of Kinshasa. Sinohydro 1 was the contractor responsible for project implementation. It was issued a $48,178,162 commercial contract on May 8, 2009; however, the loan amount provided under the Sino-Congolese Programme is unknown, and as of 2013, construction had still not begun. Subsequent reporting (most recently, 2018) by Agence Congolaise des Grands Travaux does not provide any evidence that this project ever entered implementation.

Additional details

1. The French project title is Réhabilitation et modernisation de l’avenue de la Paix (7.9 km) or Construction de l'avenue de la Paix. 2. The face value of the loan is unknown. For the time being, AidData assumes that the loan financed 85% of the $48,178,162 commercial contract cost. This issue warrants further investigation.

Number of official sources

5

Number of total sources

8