[Sino-Congolese Programme] China Eximbank provides $5 million loan for Phase 2 of Uvira Road Rehabilitation and Modernization Project (Linked to Project ID#450, #46235)

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 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 $5 million loan for Phase 2 of the Uvira Road Rehabilitation and Modernization Project. The loan ultimately achieved a disbursement rate of 96% ($4,824,815.43 out of $5,000,000). The project involved the rehabilitation and modernization of 9.55km of highways and roads of the city of Uvira in South Kivu Province. Specifically, this project will involve the rehabilitation of the Uvira crossing, which runs 9.55km from the port of Kalundu to the Kavinvira roundabout. Sinohydro is the contractor responsible for project implementation. It was awarded a $5 million contract (ID#ACGT/DG/009/2018) on November 30, 2018. Phase 2 of Uvira Road Rehabilitation and Modernization Project has entered implementation. However, it does not appear to have reached completion. The project’s originally scheduled completion date was April 2, 2019.

Additional details

1. The French project title is Modernisation de la Voirie d’Uvira. 2. In 2017, the Government of the Democratic of Congo requested addition funding worth $17,546,236.06. The 2018 ACGT Annual Report still only records the 2015 committed amount, $5 million USD, which is presumably the reason for the delay in project implementation. 3. Phase 1 of the Uvira Road Rehabilitation and Modernization Project is captured via Project ID#46235.

Number of official sources

11

Number of total sources

14