Completed Mixed AidData Chinese Aid

[Sino-Congolese Programme] China Eximbank provides $69 million loan for Grading of the Lubumbashi-Kasomeno Section of the RN5 National Road Project (Linked to Record ID#450, #59444)

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Sino-Congolais des Mines (Sicomines SARL)
Country	Democratic Republic of the Congo
Start Date	Jun 28, 2008
End Date	Apr 09, 2032
Duration	8,686 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`59441`

Grant Description

[Sino-Congolese Programme] China Eximbank provides $69 million loan for Grading of the Lubumbashi-Kasomeno Section of the RN5 National Road Project 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.

📋 Loan / Grant Terms

💰 Loan Amountcarried a maturity of 25 years

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 (on June 28, 2008) as part of the ‘Sino-Congolese Programme’ was a $69,073,563.80 loan for the Grading of the Lubumbashi-Kasomeno Section of the RN5 National Road Project.

The loan ultimately achieved a disbursement rate of 100% ($69,073,565.57 out of $69,073,563.80). The project involved the grading of national road RN5 between Lubumbashi and Kasomeno in Katanga Province. The Lubumbashi–Kasomeno road section measures 137 km in length. China Railway Engineering Corporation (CREC) was the contractor responsible for implementation.

It was awarded a $50,501,655.74 contract on June 28, 2008. A $18,571,908.06 contract amendment was subsequently issued to pay for cost overruns. Construction began on February 28, 2009 and the originally expected completion date was May 10, 2016. The road was officially completed and handed over to the Congolese authorities on December 17, 2016.

📋 Staff Comments

The French project title is Projet de terrassement de la route Lubumbashi-Kasomeno.
Project ID#59444 captures the asphalting of the Lubumbashi-Kasomeno Section of the RN5 National Road Project.
Given that AidData has captured the entire $3.003 billion China Eximbank loan commitment amount for multiple infrastructure projects via Project ID#450, it does not record a financial commitment (transaction) amount for the subsidiary loan supporting this project to avoid double-counting.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.

📚 Sources & References

The impact of Sicomines on development in the Democratic Republic of Congo
Convention de Collaboration entre la Republique Democratique du Congo et La Societe Sinohydro Corporation Relative au Developpement d'un Projet Minier et d'un Projet d'Infrastructures en Republique Democratique du Congo
Protocole d'Accord
Avenant No.3 a la Convention de Collaboration Relative au Developpement d'un Projet Minier et d'un Projet d'Infrastructures
The risks and rewards of Resource-forInfrastructure deals: Lessons from the Congo's Sicomines Agreement
Rapport Annuel 2012, drc-china infrastructure status march 2011
RDC : la société chinoise CREC réhabilite la route de Kasenga
Rapport Annuel 2013, 5 ans au service de la reconstruction et de la modernisation: Projet de cooperation Sino-Congolais
Rapport Annuel 2011, 2018 Annual Report, rapport assoupliitie
CONVENTION DE LA SINO-CONGOLAISE DES MINES : Qui perd, qui gagne entre l’Etat congolais et la Chine ? 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

Sino-Congolais des Mines (Sicomines SARL)

Interested in applying for this grant?

Complete our application form to express your interest and we'll guide you through the process.

Apply for This Grant