Skip to content
AidData logo

Overview

China Eximbank provides $80 million loan for Liouesso-Ouesso Segment of National Route 2 (RN2) Rehabilitation Project (Linked to Record ID#30235)

Commitments (Constant USD, 2023)$82,739,249
Commitment Year•2013Country of Activity•CongoDirect Recipient Country of Incorporation•CongoSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 29, 2013
Start (actual)
May 15, 2012
End (actual)
Jul 23, 2015
Last repayment
Dec 29, 2026

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

This project involved the rehabilitation of an 82 km segment between Liouesso and Ouesso along National Route 2 (RN2). More detailed locational information can be found at: https://www.openstreetmap.org/way/458178901

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 ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Republic of Congo

Implementing agencies

State-owned companies

  • China Road & Bridge Corporation (CRBC)

Collateral providers

State-owned companies

  • Société Nationales des Pétroles Congolais (SNPC)

Loan desecription

China Eximbank provides $80 million loan for Liouesso-Ouesso Segment of National Route 2 (RN2) Rehabilitation Project

Interest type•UnknownMaturity•14 years

Collateral

This China Eximbank loan -- and other subsidiary China Eximbank loans approved under a June 19, 2006 framework agreement that was renewed/extended in 2012 -- was collateralized against cash proceeds from SNPC oil export sales to Chinese importers (through an offtake agreement), which were deposited in a China Eximbank-controlled escrow account. The Republic of Congo was required to maintain a minimum cash balance in the escrow account equivalent to approximately 20% of its total outstanding debt to China Eximbank. The cash balance in the China Eximbank-controlled escrow account was $534,238,226 (CFA 272,846,414,000) in 2011, an unknown amount in 2012, an unknown amount in 2013, an unknown amount in 2014, an unknown amount in 2015 (equivalent to 26% of SNPC oil sales in 2015), $281,560,937 in 2016 (equivalent to 7,558,672 barrels of oil or 32% of SNPC oil sales in 2016), $338,285,020 in 2017 (equivalent to 23.25% of SNPC oil sales in 2017), $513,780,005 in 2018 (equivalent to 7,411,386 barrels of oil, eight oil cargoes, or 30.22% of SNPC oil sales in 2018), $523,547,187 in 2019 (equivalent to 8,228,065 barrels of oil, 9 oil cargoes, or 32.56% of SNPC oil sales in 2019), $266,659,781 in 2020 (equivalent to 6,349,813 barrels of oil, 7 oil cargoes, or 31.61% of SNPC oil sales in 2020), $319,164,228 in 2021 (equivalent to 4,585,056 barrels of oil or 21.4% of SNPC oil sales in 2021), and $356,343,684 in 2022 (equivalent to 3,634,514 barrels of oil 13.09% of SNPC oil sales in 2022).

Narrative

Full Description

Project narrative

On March 29, 2013, China Eximbank and the Republic of Congo signed a $600 million loan framework agreement (captured in Record ID#30235) — also known in the Republic of Congo as the “strategic partnership 3” (“partenariat stratégique 3”) — 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. Three of the subsidiary loans that were approved through the framework agreement supported Phase 2 of the National Route 2 (RN2) Rehabilitation Project (also known as the Owando-Makoua-Liouesso-Ouesso Highway Rehabilitation Project). They included a $84,118,153.90 loan for the Mambili-Moyoye Segment of the National Route 2 (RN2) Rehabilitation Project (captured in Record ID#72912), a $77,247,150.00 loan in 2013 for the Moyoye-Liouesso Segment of the National Route 2 (RN2) Rehabilitation Project (captured in Record ID#72915), and a $80,020,838.15 loan for the Liouesso-Ouesso Segment of the National Route 2 (RN2) Rehabilitation Project (captured in Record ID#72916). The China Eximbank loan that supported the Mambili-Moyoye Segment of the National Route 2 (RN2) Rehabilitation Project carried a 17-year maturity, but its interest rate and grace period are unknown. Its (principal) amount outstanding was $47,342,886 as of December 31, 2019. The China Eximbank loan that supported the Moyoye-Liouesso Segment of the National Route 2 (RN2) Rehabilitation Project carried a 15-year maturity, but its interest rate and grace period are unknown. Its (principal) amount outstanding was $44,007,809 as of December 31, 2019. The China Eximbank loan that supported the Liouesso-Ouesso Segment of the National Route 2 (RN2) Rehabilitation Project carried a 14-year maturity, but its interest rate and grace period are unknown. Its (principal) amount outstanding was $46,675,629 as of December 31, 2019. Phase 2 of the National Route 2 (RN2) Rehabilitation Project involved the construction of a 199 km stretch of National Route 2 (NR2) that runs between Owando and Ouesso and passes through Makoua and Liouesso. The total reported cost of Phase 2 was $260 million and the expected duration of its construction period was 42 months. It was funded and implemented in three sections (segments): a 34 km segment between Moyoye and Liouesso, an 82 km segment between Liouesso and Ouesso, and a 95 km segment between Mambili and Moyoye. China Road and Bridge Corporation (CRBC) was the contractor responsible for Phase 2, including all three segments (sections) Phase 2 construction began on May 15, 2012, and ended on July 23, 2015. China Eximbank also financed Phase 1 of the National Route 2 (RN2) Construction Project, which is captured in Record ID#12892 and Record ID#72791

Staff comments

1. The French project title is Route N° 2 Liouesso-Ouesso or la Route Nationale N°2 tronçon Liouesso-Ouesso. The Chinese project title is 国家2号公路二期（芒比利-韦索公路) or 国家2号公路Owando-Mambili段翻修及沥青罩面工程. 2. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it identifies a single $234 million China Eximbank loan for Phase 2 of the National Route 2 (RN2) Construction Project (also known as the Owando-Makoua-Liouesso-Ouesso Highway Project). AidData records the three separate China Eximbank loans for the Moyoye-Liouesso, Liouesso-Ouesso, and Mambili-Moyoye segments of the National Route 2 (RN2) Construction Project that are recorded by the Republic of Congo’s Public Debt Agency (Caisse Congolaise d’Amortissement or CCA) and Délégation Générale des Grands Travaux (DGGT). These three loans are collectively worth $237,288,826.30. All three of these loans were also disclosed by the Congolese authorities to the World Bank and subsequently reportedly by the World Bank in its September 2014 Republic of Congo Economic Update publication.