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China Eximbank restructures $96,363,373 loan for 19.2MW Liouesso Hydroelectric Dam Construction Project (Linked to Record ID#31028, #58340, #89048, #89049, #89054, #89061, #89062, #89063)
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Government of Republic of Congo |
| Country | Congo |
| Start Date | Apr 29, 2019 |
| End Date | Nov 30, 2033 |
| Duration | 5,329 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 89051 |
Grant Description
On April 29, 2019, the Republic of Congo and China Eximbank signed a debt rescheduling agreement that applied to 8 China Eximbank loans contracted by the Republic of Congo between 2010 and 2014.
The first loan (worth $84,000,000) was contracted in 2010 for the Djiri Water Treatment Plant Extension Project (see Record ID#69323) and it carried the following terms: an interest rate of 0.25%, a maturity of 13 to 20-years, and a grace period of 3 to 5-years.
The second loan (worth $88,000,000) was contracted in 2010 for the Djiri Water Treatment Distribution Network Project (see Record ID#69335) and it carried the following terms: an interest rate of 0.25%, a maturity of 13 to 20-years, and a grace period of 3 to 5-years.
The third loan (worth $1,000,000,000) was contracted in 2013 for the Dolisie-Brazzavile Section of the Pointe-Noire-Brazzaville Road (RN1) Construction Project (see Record ID#369) and it carried the following terms: an interest rate of 0.25%, a maturity of 20-years, and a grace period of 5-years.
The fourth loan (worth $96,363,372.65) was contracted in 2011 for the 19.2MW Liouesso Hydroelectric Dam Construction Project (see Record ID#31028) and it carried the following terms: an interest rate of 0.25%, a maturity of 19-years, and a grace period of 4-years.
The fifth loan (worth $62,310,857.20) was contracted in 2014 for the Brazzaville Shopping Center Project (see Record ID#58408) and it carried the following terms: an interest rate of 0.25%, a maturity of 14-years, and a grace period of 3 to 5-years.
The sixth loan (worth $54,800,000) was contracted in 2013 for the 264 Mpila Social Housing Units Construction Project (see Record ID#31029) and it carried the following terms: an interest rate of 0.25%, a maturity of 13-years, and a grace period of 3 to 5-years.
The seventh loan (worth $328,100,000) was contracted in 2014 for the Mpila Twin Towers Construction Project (see Record ID#58720) and it carried the following terms: an interest rate of 0.25%, a maturity of 13 to 20-years, and a grace period of 3 to 5-years.
The eighth loan (worth $19,191,458.40) was contracted in 2014 for the Mpila Memorial Construction Project (see Record ID#58721) and it carried the following terms: an interest rate of 0.25%, a maturity of 14-years, and a grace period of 3 to 5-years.
The Republic of Congo’s outstanding debt obligations under these 8 loans amounted to $1,612,330,000 at the point of rescheduling in April 2019.
Under the terms of the rescheduling agreement, the Republic of Congo agreed to repay 33% of its outstanding debt obligations under each of these 8 loans ($532,068,900 in total) within 3-years.
For the remaining 67% of its outstanding debt obligations under each of these 8 loans, the Republic of Congo agreed to meet its obligations according to extended maturities and higher interest rates.
Therefore, the estimated maturities and interest rates of these 8 loans after the April 2019 rescheduling are as follows: a 31.5-year maturity and 1.5% interest rate for the China Eximbank loan supporting the Djiri Water Treatment Plant Extension Project (captured via Record ID#58340); a 31.5-year maturity and 1.5% interest rate for the China Eximbank loan supporting the Djiri Water Treatment Distribution Network Project (captured via Record ID#89048); a 35-year maturity and 2% interest rate for the China Eximbank loan supporting the Dolisie-Brazzavile Section of the Pointe-Noire-Brazzaville Road (RN1) Construction Project (captured via Record ID#89049); a 34-year maturity and 1.5% interest rate for the China Eximbank loan supporting the 19.2MW Liouesso Hydroelectric Dam Construction Project (captured via Record ID#89051); a 29-year maturity and 1.5% interest rate for the China Eximbank loan supporting the Brazzaville Shopping Center Project (captured via Record ID#89054); a 35-year maturity and 1.5% interest rate for the China Eximbank loan supporting the 264 Mpila Social Housing Units Construction Project (captured via Record ID#89061); a 31.5-year maturity and 1.5% interest rate for the China Eximbank loan supporting the Mpila Twin Towers Construction Project (captured via Record ID#89062); and a 29-year maturity and 1.5% interest rate for the China Eximbank loan supporting the Mpila Memorial Construction Project (see Record ID#89063).
After restructuring all eight of these loans, the net present value of total repayments to China Eximbank rose from $1.3 billion (before restructuring) to $1.6 billion (after restructuring). This increase represents a 23% increase in net present value terms.
Sources & References
- Inauguration du troisième barrage congolais financé par la Chine
- Both Houses of the Parliament have ratified a Complementary Agreement on the Restructuring of Congo's debt to China by 1, 479.83 billion FCFA.
- Résumé de l'Accord de restructuration de la dette du Congo envers la Chine
- Les deux chambres du Parlement ont ratifié l’accord complémentaire sur la restructuration de la dette du Congo de 1479,83 milliards de F CFA envers la Chine
- EXIMBANK China
- Resource-Backed Loans: Pitfalls and Potential
- LA DETTE RÉÉCHELONNÉE DU CONGO ENVERS LA CHINE CHIFFRÉE À 1 479,83 MILLIARDS FCFA
- Chinese Debt Relief: Fact and Fiction
- IMF approves Congo Republic bailout after China debt deal
- China Eximbank Loans Subject to the April 2019 Debt Restructuring Agreement
- Documentation Webmail Contactez nous frEn ACCUEIL LE MINISTRE LE MINISTÈRE APPS EN LIGNE DOCUMENTATION PRESSE Vous êtes ici Accueil > DES ARTICLES > Les deux chambres du Parlement ont ratifié l’accord complémentaire sur la restructuration de la dette du Congo de 1479,83 milliards de F CFA envers la Chine Share Les deux chambres du Parlement ont ratifié l’accord complémentaire sur la restructuration de la dette du Congo de 1479,83 milliards de F CFA envers la Chine
- Résumé de l'Accord de restructuration de la dette du Congo envers la Chine
- Les deux chambres du Parlement ont ratifié l’accord complémentaire sur la restructuration de la dette du Congo de 1479,83 milliards de F CFA envers la Chine
- Eximbank-China Ministry of Development Territorial Equipment and Major Works
- ROC_draft report on initial data collection and stakeholder consultations (final)
- N°23 RAPPORT SUR L'ACCORD COMPLEMENTAIRE SUR LA RESTRUCTURATION DE LA DETTE ENVERS LA CHINE (1) N°23
- LES SÉNATEURS ONT ADOPTÉ LE PROJET DE LOI AUTORISANT LA RATIFICATION DE L’ACCORD COMPLÉMENTAIRE SUR LA RESTRUCTURATION DE LA DETTE DU CONGO ENVERS LA CHINE
- Assemblee Nationale Commission Economie
- Finances ET
- Bargaining with Beijing: A Tale of Two Borrowers
- Global Debt Relief Dashboard
- Congo Republic says it has agreed debt restructuring deal with China
- Ministère des Finances, du Budget et du Portefeuille Public - CONGO
- Bargaining with Beijing: A Tale of Two Borrowers
- Bargaining with Beijing February 2021 Update 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.
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Government of Republic of Congo
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