[Sino-Congolese Programme] China Eximbank provides $56.6 million loan for Phase 2 of 55.5 km Bukavu-Nyangezi-Kamanyola-Uvira Segment of Route Nationale 5 (RN5) Construction and Modernization Project (Linked to Record ID#450, #46231)

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 $56,602,312.69 million loan for Phase 2 of the 55.5 km Bukavu-Nyangezi-Kamanyola-Uvira Segment of Route Nationale 5 (RN5) Construction and Modernization Project. The contract for the project was signed December 22, 2010. The project involved the construction and modernization of a 55.5 km road between the town of Bukavu and the town of Uvira in North Kivu Province. The road also connects the cities of Uvira and Kamanyola, which are border towns near Rwanda and Burundi and important areas for agricultural production. Sinohydro 14 and CIMA International were the contractors responsible for implementation and their work was overseen by DRC's Agence Congolais des Grands Travaux. Phase 2 construction began in May 2018. Construction on the RN5 Bukavu resumed August 21, 2020 after it was stopped for more than a year.