Active Development AidData Chinese Aid

Chinese Government extends a $200 million line of credit for Societe Nationale des Chemins de Fer du Congo (SNCC) (Linked to Record ID#58763, #58764, #58765, #58766, #58767, #58768, and #58769)

$200M USD

Funder	Unspecified Chinese Government Institution
Recipient Organization	Government of Democratic Republic of Congo
Country	Democratic Republic of the Congo
Start Date	Jan 01, 2011
End Date	Apr 13, 2033
Duration	8,138 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`58762`

Grant Description

Chinese Government extends a $200 million line of credit for Societe Nationale des Chemins de Fer du Congo (SNCC) In 2011, the Chinese Government reportedly signed a $200 million framework agreement (line of credit) for the Societe Nationale des Chemins de Fer du Congo (SNCC), a state-owned railway company in the DRC.

SNCC intended to use the line of credit to finance 7 different projects/activities: (1) $97.5 million for the acquisition of construction materials for track works (rails, switch and crossover accessories, steel sleepers equipment); (2) $3.8 million for the rehabilitation of structures and earthen structures: (3) $9.6 million for the acquisition of 2 electrical substations; (4) $10 million for the acquisition of new locomotives (20 locomotives diesel; (5) $68.3 million for the acquisition of 20 diesel locomotives, 10 electric locomotives and 5 locomotives (6) $19.1 million for the acquisition of 60 new passenger cars; and (7) $1.7 million for other non-technical elements.

However, there is no evidence that any individual (subsidiary) borrowings under the line of credit were ever approved.

Nor is there any evidence that any of the seven projects/activities were implemented with support from the Chinese Government or a Chinese state-owned creditor.

📋 Staff Comments

The seven projects/activities are identified in the 2011 Annual Report of Cellule d'Exécution de Transport Multimodal de la République Démocratique du Congo (CEPTM).
On September 17, 2007, the Congolese Minister for Public Works & Infrastructure Pierre Lumbi and Chinese Ambassador to the DRC Wu Xexuan signed a railway project agreement. The agreement envisaged (a) the construction of a 700 km new line between the river port of Ilebo and Kinshasa, and (b) rehabilitation of the 1,067 mm gauge lines linking Sakania and Lubumbashi in the province of Katanga to Ilebo and from Kinshasa to Matadi. It is unclear if the 2011 line of credit was used to facilitate the implementation of the same railway project. This issue warrants further investigation.
According to a 2010 World Bank Report, the $200 million line of credit was intended to support the SNCC's recovery plan, and enable SNCC to acquire new rolling stock and railway track construction materials, as well as acquire 2 electrical substations. The same report stated that the $200 million line of credit was provided by the Chinese Government to to the Government of DRC, which in turn transferred the financing to SNCC in the form of a grant. This issue warrants further investigation.

📚 Sources & References

National Railway Company of Congo SNCC Recovery Plan
Résilience d’un Géant Africain: Accélérer la Croissance et Promouvoir l’Emploi en République Démocratique du Congo
Rapport Annuel 2011
DR Congo's rail revamp backed by China and World Bank
Chinese to plug Ilebo - Kinshasa gap in DR Congo
PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF SDR 168.8 MILLION (US$255.0 MILLION EQUIVALENT) TO THE DEMOCRATIC REPUBLIC OF THE CONGO FOR A MULTIMODAL TRANSPORT PROJECT 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.