Completed Development AidData Chinese Aid

China Eximbank provides RMB 200 million government concessional loan for the Loutété Cement Factory Reconstruction Project

¥200M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Société Nouvelle des Ciments du Congo (SONOCC)
Country	Congo
Start Date	Jan 01, 2003
End Date	Mar 31, 2032
Duration	10,682 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`447`

Grant Description

China Eximbank provides RMB 200 million government concessional loan for the Loutété Cement Factory Reconstruction Project On July 28, 2000, the Chinese Government and the Republic of Congo signed a preferential loan framework agreement regarding the Loutété Cement Factory Reconstruction Project.

Then, in 2003, the Export-Import Bank of China Eximbank provided a RMB 200,000,000 government concessional loan (GCL) for the Loutété Cement Factory Reconstruction Project in 2003.

📋 Loan / Grant Terms

💰 Loan Amountcarried an interest rate of 2%

With the proceeds from this loan, a new public cement company called Société Nouvelle des Ciments du Congo (SONOCC) was established.

SONOCC was a joint venture between Société Nationale Chinoise de Travaux de Ponts et Chaussées (SNCTPC) (56% equity) and the Republic of Congo (44% equity). The Loutété cement factory reconstruction project — under the ownership of SONOCC — began in 2003. The cement plant began production in May 2004.

It ultimately achieved an annual cement production capacity of about 200,000 tons. CRBC was the contractor responsible for project implementation.

There are some indications that the China Eximbank loan for the Loutété Cement Factory Reconstruction Project may have financially underperformed vis-a-vis the original expectations of the lender.

In 2020, China Eximbank and the Republic of Congo signed a debt suspension agreement as part of the G-20 Debt Service Suspension Initiative (DSSI).

Under the terms of the agreement, the lender agreed to suspend principal and interest payments due between May 1, 2020 and December 31, 2020 under multiple buyer’s credit loan (BCL) agreements and multiple government concessional loan (GCL) agreements (as captured via Record ID#95566 and ID#95571).

Debt service payments under many of these loan agreements were again deferred in 2021 (as captured via Record ID#95573, 95572, 95570, and 95568). The IMF assessed the Republic of Congo to be in debt distress in 2021, 2022, and 2023.

📋 Staff Comments

This project is referred to as the Loutete Cement Factory Project in the Chinese Government’s 2011 White Paper on Foreign Aid. The Chinese project title is 的鲁特特水泥 or 鲁特特水泥厂恢复生产项目 or 中国鲁特特水泥厂 or 刚果（布）新水泥厂 or 刚果（布）鲁特特水泥厂恢复生产项目. The French project title is Modernisation de la cimenterie de Loutété.
SNCTPC is the French name for China Road and Bridge Corporation (CRBC).
In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not identify the interest rate of the China Eximbank loan that supported this project. AidData records the interest rate (2%) that is reported by China’s Ministry of Commerce (MOFCOM).
The loan's maturity (19-years) and grace period (10-years) are drawn from the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 and https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=05. It is not clear if the borrower of this China Eximbank loan was the Republic of Congo or SONOCC. This issue merits further investigation.

📚 Sources & References

http://www.chinadaily.com.cn/cndy/2012-07/11/content_15567274.htm
Chinese cement plant in Congo mixes new jobs with hard labour
Chine-Congo : 40 ans des liens d' amitié et de coopération
Les relations économiques de la Chine avec la République du Congo
China's Bilateral Relations with Its Principal Oil Suppliers
驻刚果（布）大使关键出席中国企业投资刚果新水泥公司改扩建项目开工仪式
Congo
Brazzaville Commercial Court
May 04, 2005, 231
中刚合资的刚果（布）新水泥厂拟投资3000万美元扩大产能
Jurisprudence de la Chambre commerciale de la Cour d’appel de Brazzaville, 2010-2013
Status - SONOCC
中国路桥工程有限责任公司刚果（布）办事处
Marché du ciment : crise de coopération signalée entre la Sonocc et le ministère du commerce
刚果新水泥厂威胁停止向布拉柴维尔供应水泥
中国路桥⼯程有限责任公司刚果（布）办事处, “两优”贷款助力中国企业“走出去”
刚果（布）新水泥厂总经理李兴涛：刚果（布）如何从水泥进口国变为水泥出口国
中国路桥工程有限责任公司刚果（布）办事处
Congo: l'unique usine de ciment du pays envisage d'atteindre une production annuelle de 300 mille tonnes (PAPIER GENERAL)
Aiding Transparency: What We Can Learn About China ExIm Bank’s Concessional Loans
How China delivers development assistance to Africa
White paper: China's foreign aid Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Société Nouvelle des Ciments du Congo (SONOCC)

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