China Eximbank provides provides $76.8 million loan for Phase 2 (Okoyo-Gabon Border Section) of Obouya-Gabon Border Road (RN3) Project (Linked to Project ID#30235 and #14829)

On March 29, 2013, China Eximbank and the Republic of Congo signed a $600 million loan framework agreement (captured in Project ID#30235) — also known in the Republic of Congo as the “strategic partnership” (“partenariat stratégique”) — that allowed the Republic of Congo to obtain China Eximbank loans for infrastructure projects through a securitization mechanism: Société Nationales des Pétroles Congolais (SNPC)—the country’s state-owned oil company — agreed to deposit a portion of the cash proceeds from its oil exports into an escrow account that is controlled by China Eximbank. One of the subsidiary loans that was approved through the framework agreement included a $76,894,549.60 loan in 2013 for Phase 2 (Okoyo-Gabon Border Section) of the Obouya-Gabon Border Road Project. This loan carried the following terms: a 0.25% interest rate, a 14-year maturity, and a 5-year grace period. Its (principal) amount outstanding was $41,660,912 as of December 31, 2019. The Obouya-Gabon Border Road (RN3) Construction Project supported the development of a 207 km road corridor. The road connects National Route 2 (RN2) with the Gabon border, and its construction included small bridges, drainage infrastructure, schools, and medical centers for major villages along the road, and a gas station at 100km intervals. This project was implemented in two phases and supported by two different China Eximbank loans. Phase 1 (captured via Project ID#14829) supported the construction of 116.575 km segment of the border road from Obouya to Okoyo via Boundji. A formal project commencement ceremony took place on February 25, 2008. However, a project start order was not issued until June 15, 2008. The project achieved temporary acceptance on November 2, 2011. On the very next day (November 3, 2011), a project completion (inauguration) ceremony took place. However, the contractor responsible for implementation later reported that Phase 1 was not completed until October 23, 2013. Phase 2 (captured via Project ID#68956) involved the construction of a 90 km segment of the border road from Okoyo to the country’s border with Gabon via Lékéty. A foundation laying ceremony for Phase 2 took place on November 3, 2011 and this road segment opened to traffic on December 14, 2015. China Machinery Engineering Corporation (CMEC) was the contractor responsible for the implementation of both phases.

Additional details

1. Phase 2 of the Obouya-Gabon Border Road Project is also known as the Okoyo-Gabon Border Road Project. The French project title for phase II is Route N° 2 Okoyo Frontiere Gabon or Okoyo – Lékéty – Frt. Gabon. The Obouya-Gabon Border Road Project is also known as Obouya-Okoyo-Lékéty-Gabon Border Road Project. The Chinese project title is 刚果(布)加蓬边境公路二期. 2. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it identifies a $74 million China Eximbank loan (with a maturity length of 20 years) for this project. AidData relies on the face value of the loan ($76,894,549.60) and the maturity length (14 years) that is recorded by the Republic of Congo’s Public Debt Agency (Caisse Congolaise d’Amortissement or CCA) and Délégation Générale des Grands Travaux (DGGT). 3. According to a 2019 report published by the Republic of Congo’s National Assembly, all loans approved under the March 29, 2013 framework agreement had an interest rate of 0.25%. Therefore, AidData assumes an interest rate of 0.25%.

Number of official sources

9

Number of total sources

15