[Sino-Congolese Programme] China Eximbank provides $35.8 million loan for Triomphale Boulevard and Sendwe Boulevard Modernization Project (Linked to Project ID#450, #59432)

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’ line of credit. One of the subsidiary loans issued as part of the 'Sino-Congolese Programme' was a $29,234,927.99 loan for the Triomphale Boulevard and Sendwe Boulevard Modernization Project. The loan ultimately achieved a disbursement rate of 96.1% ($34,524,231.94 out of $35,894,638.24). This project involved the modernization of the Triomphal and Sendwe Boulevards (3.8 km in length) in Kinshasa. China Railway Engineering Corporation (CREC) was the contractor responsible for implementation. It was awarded a $29,234,927.62 contract (ID#ACGT/DG/DT/2/2002/2009) on December 9, 2009. A $6,659,710.62 contract amendment was subsequently issued to pay for cost overruns. Construction began on December 24, 2009 and ended on April 13, 2013. The originally anticipated project completion date was January 18, 2013. According to multiple reports, CREC and Sinohydro came under political pressure to complete infrastructure works in central Kinshasa ahead of the DRC's 50th anniversary in June 2010, which included the refurbishment of the Triomphale and Sendwe Boulevards. On the CREC website, this project is referred to as a DRC 50th Anniversary Project.

Additional details

1. The French name of this project is Boulevards Sendwe et Triomphal. 2. This project is separate from the $5 million loan that supported the refurbishment of the same two boulevards in 2017 (captured in Project ID#59432). 3. One source suggests that, due to budget overruns between 2011-2013, the contract cost was raised twice through 2 amendments. Consequently, the final cost of the contract was reportedly $36,245,149.70 (see 2018 AGCT Annual Report), an increase of $7,010,221.71 over the original amount. It is unclear if the final loan disbursement amount was also $36,245,149.70. This issue warrants further investigation. 4. Project ID#59432 captures $5 million of complementary funding to later refurbish Triomphale Boulevard and Sendwe Boulevard.

Number of official sources

9

Number of total sources

12