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Overview

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

Commitment Year•2009Country of Activity•Democratic Republic of the CongoDirect Recipient Country of Incorporation•Democratic Republic of the CongoSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2009
Start (actual)
Dec 24, 2009
End (planned)
Jan 18, 2023
End (actual)
Apr 13, 2013
First repayment (originally scheduled)
Dec 30, 2018
Last repayment (originally scheduled)
Dec 26, 2033

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of this project was to refurbish the Triomphal and Sendwe Boulevards (3.8 km in length) in Kinshasa. More detailed locational information can be found at https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-4.33707%2C15.29624%3B-4.33696%2C15.32680#map=15/-4.3344/15.3115

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 Engineering Corporation (CRECG)

Guarantors

Government Agencies

  • Government of Democratic Republic of Congo

Collateral providers

Joint Venture/Special Purpose Vehicles

  • Sino-Congolais des Mines (Sicomines SARL)

Loan description

[Sino-Congolese Programme] China Eximbank provides $35.8 million loan for Triomphale Boulevard and Sendwe Boulevard Modernization 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

ubsidiary (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 $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). The 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.

Staff comments

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 Record 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. Record ID#59432 captures $5 million of complementary funding to later refurbish Triomphale Boulevard and Sendwe Boulevard. 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.