Overview

[Sino-Congolese Programme] China Eximbank provides $9.5 million loan for 12.934 km Kamina-Musonoï-Kapata Road Construction Project (Linked to Record ID#450)

Commitment Year•2018Country 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: May 16, 2018

Start (actual): May 16, 2018

End (actual): Sep 21, 2020

First repayment: May 13, 2028

Last repayment: May 10, 2043

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of thsi project was to provide fund for the construction of 12.934 km Kanina-Musonoï-Kapata route in Lualaba https://www.openstreetmap.org/directions?engine=graphhopper_car&route=-10.7341%2C25.4699%3B-10.7548%2C25.3829#map=14/-10.7429/25.4261

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

Société d'Infrastructures Sino-Congolaises (SISC) SA

Guarantors

Government Agencies

Government of Democratic Republic of Congo

Collateral providers

State-owned companies

Sino-Congolais des Mines (Sicomines SARL)

Loan desecription

[Sino-Congolese Programme] China Eximbank provides $9.5 million loan for 12.934 km Kamina-Musonoï-Kapata Road Construction 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

Subsidiary (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 $9.5 million loan for the construction of 12.934 km Kamina-Musonoï-Kapata route in Lualaba. The loan ultimately achieved a disbursement rate of 100% ($9.5 million out of $9.5 million). Société d'Infrastructures Sino-Congolaises (SISC) SA was the contractor responsible for project implementation. It was awarded a $9.5 million contract (ID#ACGT/DG/003/2018) on May 16, 2018. Construction also began on May 16, 2018. The project was reportedly completed on September 21, 2020 and handed over to the Government of the Democratic Republic of Congo and the OVD for maintenance.

Staff comments

1. The French project title is Construction de la route Kamina-Musonoi-Kapata. 2. 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.