Active Mixed AidData Chinese Aid

CRBC reschedules $140 million of outstanding debt (principal arrears) with the Congolese Government in 2022 (Linked to Record ID#105739)

Funder	China Road & Bridge Corporation (CRBC)
Recipient Organization	Government of Republic of Congo
Country	Congo
Start Date	Jan 01, 2022
End Date	Nov 30, 2027
Duration	2,159 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`105740`

Grant Description

The Congolese authorities first announced its intention to concession National Road 1 (RN1) and National Road 2 (RN2) on February 6, 2016.

La Congolaise des Routes S.A. [LCR or (刚果（布）国家1号公路特许经营项目公司] — a special purpose vehicle and joint venture between CSCEC (70% ownership stake), Egis Projects (15% ownership stake) and the Congolese Government (15% ownership stake) — passed the pre-qualification stage in June 2016 and submitted a technical and financial proposal in February 2017.

It then received a ‘priority negotiation invitation letter’ in November 2017. Negotiations between LCR and the Congolese Government took place between December 2017 and April 2018. The parties finalized and signed a 30-year concession (franchise) agreement at the FOCAC Summit in September 2018.

Then, on December 10, 2020, the Government of the Republic of Congo signed a supplier’s credit agreement with China Road and Bridge Corporation (CRBC) for the 835 km Brazzaville-Ouesso Section of the National Road 2 (RN2) Rehabilitation and Extension Project (captured in Record ID #105739).

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, it is known that CRBC and the Government of the Republic of Congo signed a debt rescheduling agreement in 2022, which rescheduled $140 million of outstanding debt (principal arrears) under the supplier’s credit agreement.

According to IMF Country Report No. 23/89, the rescheduling agreement provided for a ‘regularization of arrears with [CSCEC] which involved converting the original CFA franc debt into U.S. dollars […].’ The same report notes that the arrangement was subsequently ‘unwound—corrected by reconverting the debt back into CFA francs.’

📋 Staff Comments

The French project title is Travaux d’urgence sur la Route Nationale n°2 à partir du rond-point Mikalou jusqu’au pont Djiri et sur la 2ème sortie nord de Brazzaville y compris la Brettelle Ragec or Mikalou-Pont Djiri, longue de 14 km, y compris Bretelle Ragec, longue de 2,8 km.
According to the World Bank’s International Debt Statistics (IDS), the Congolese Government had principal arrears to ‘private’ Chinese creditors worth $1,171,780,000 in 2021 and $49,802,000 in 2022 (see https://www.dropbox.com/scl/fi/g54lg0kqd2rg6tirlt59f/Principal-and-interest-arrears-of-ROC-to-Chinese-commercial-creditors-IDS-July-2024.xlsx?rlkey=rv0r2kfzw3reyyxl5ekpcl0b0&dl=0).
According to the World Bank’s International Debt Statistics (IDS), the Congolese Government and its ‘private’ Chinese creditors rescheduled principal repayment obligations worth $1,146,879,000 in 2022 (see https://www.dropbox.com/scl/fi/shqo5w418nwvocuiibhn8/IDS-Principal-and-Interest-Amounts-Rescheduled-14-July-2024.xlsx?rlkey=6mka34nyg2qpwd7lvgfxz6x87&dl=0). $1,146,879,000 is roughly equivalent to the sum of the values of two debt treatments that are identified in the February 2023 World Bank-IMF Debt Sustainability Analysis for Congo-Brazzaville (https://documents1.worldbank.org/curated/en/099220503022313177/pdf/BOSIB08f099df703e0b0540dd698cc66f60.pdf) and the Congolese Ministry of Finance’s 2022 Public Debt Report (https://web.archive.org/web/20240605224117/https://www.finances.gouv.cg/sites/default/files/documents/Rapport%20sur%20la%20dette%202022%20V4.pdf): a $1 billion (CFA 450 billion) debt rescheduling with China State Construction Engineering Corporation (CSCEC) and a $140 million debt rescheduling with China Road and Bridge Corporation (CRBC).
The concession agreement can be accessed in its entirety via https://www.sgg.cg/JO/2019/congo-jo-2019-01-sp.pdf.”

📚 Sources & References

Bulletin statistique de la dette publique
Congo/Chine : La Chine, amie de Sassou Nguesso ou amie du Peuple congolais ?
Des entreprises chinoises réaffectent le remboursement de leurs créances dans de nouveaux projets au Congo
Djiri : démarrage des travaux de réhabilitation de la route de l’Académie militaire
Documentation
IDS Principal and Interest Amounts Rescheduled 14 July 2024
IMF Country Reports - Republic of Congo: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Congo
Infrastructures : trois sociétés chinoises réinjectent leurs créances dans de nouveaux chantiers
JOURNAL OFFICIEL DE LA REPUBLIQUE DU CONGO paraissant le jeudi de chaque semaine à Brazzaville
Partenariat public-privé : Signature d’actes d’engagement pour la relance de l’économie
Principal and interest arrears of ROC to Chinese commercial creditors IDS July 2024
Rapport N°92 de la Commission Economie et Finances Relatif au Debat d'Orientation Budgetaire
RAPPORT SUR LA DETTE 2022
REPUBLIC OF CONGO FOURTH REVIEW UNDER THE THREE-YEAR ARRANGEMENT UNDER THE EXTENDED CREDIT FACILITY
REQUESTS FOR MODIFICATION OF PERFORMANCE CRITERIA
WAIVERS OF NONOBSERVANCE OF PERFORMANCE CRITERIA
AND FINANCING ASSURANCES REVIEW—PRESS RELEASE; STAFF REPORT; DEBT SUSTAINABILITY ANALYSIS; SUPPLEMENTARY INFORMATION; AND STATEMENT BY THE EXECUTIVE DIRECTOR
Republic of Congo Joint World Bank-IMF Debt Sustainability Analysis
REQUEST FOR A THREE-YEAR ARRANGEMENT UNDER THE EXTED CREDIT FACILITY—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR THE REPUBLIC OF CONGO
RN2 : Jean Jacques Bouya optimiste
Route nationale n°2 : le tronçon Djiri-Ingah en pleine réhabilitation
Signature d’un acte d’engagement pour la réalisation des projets dans les domaines agricole et d’infrastructures
Strategie de destion de la dette à moyen-terme
Transport : lancement de la concession des routes nationales I et II
Trois sociétés chinoises s’engagent à relancer les projets au Congo _ Ministry of Development Territorial Equipment and Major Works
UN General Assembly National report submitted pursuant to Human Rights Council resolutions 5/1 and 16/21* Congo
刚果（布）2号公路涵洞修复工程及金德磊大学城水毁工程通过最终验收 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

Government of Republic of Congo

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