Identifier
Created
Classification
Origin
06KINSHASA1731
2006-11-10 08:21:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kinshasa
Cable title:
LOANS TO DRC FROM CHINA, INDIA, KUWAIT
how-toVZCZCXYZ0002 RR RUEHWEB DE RUEHKI #1731 3140821 ZNR UUUUU ZZH R 100821Z NOV 06 FM AMEMBASSY KINSHASA TO RUEHC/SECSTATE WASHDC 5137 INFO RUEHBJ/AMEMBASSY BEIJING 0061 RUEHKU/AMEMBASSY KUWAIT 0011 RUEHNE/AMEMBASSY NEW DELHI 0011 RUEAIIA/CIA WASHDC RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK RHMFISS/HQ USEUCOM VAIHINGEN GE RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS KINSHASA 001731
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EFIN EAID ETRD EMIN PGOV CG CH IN KU
SUBJECT: LOANS TO DRC FROM CHINA, INDIA, KUWAIT
REF: A. SECSTATE 106631
B. KINSHASA 1621
UNCLAS KINSHASA 001731
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EFIN EAID ETRD EMIN PGOV CG CH IN KU
SUBJECT: LOANS TO DRC FROM CHINA, INDIA, KUWAIT
REF: A. SECSTATE 106631
B. KINSHASA 1621
1. (SBU) Post submits the following in response to reftel A's
request for information on new lending from emerging
bilateral creditors. The GDRC's bilateral lending agreements
include China, India and Kuwait, although detailed
information about the loans is difficult to obtain. (Note:
Even the IMF mission in Kinshasa has been unsuccessful in
determining the overall levels of Chinese, Indian and other
non-permanent Paris Club country loans, grants and other
investments. End note.)
CHINA
--------------
2. (U) A state-owned Chinese company, COVEC (China National
Overseas Engineering Company),has loaned Gecamines, the
DRC's copper/cobalt mining parastatal, USD 60 million as part
of a transaction to reopen Luisha, a Katanga copper mine
(reftel B). COVEC has a 72 percent share in the joint
venture with Gecamines.
3. (U) Purusant to a framework agreement Minister of Finance
Marco Banguli signed September 7, the Government of China
agreed to loan the GDRC USD 32 million to fund the
development of a GSM network that will support the nationwide
growth of Congo China Telecom, a Chinese company. The
15-year loan has a two percent annual interest rate and an
initial five-year repayment grace period.
INDIA
--------------
4. (U) Pursuant to an August 2005 bilateral agreement, the
Government of India extended to the GDRC USD 33.5 million in
export financing credit, and according to a Ministry of
Finance contact, the interest rate is less than 1.5 percent.
The agreement earmarks USD 12.5 million for the purchase of
buses from Tata Motors (an Indian company that is part of the
conglomerate Tata Group),USD 13 million to construct a
cement plant in Orientale province, USD 6 million for
rehabilitation of a manganese mine, USD 2 million for the
purchase of equipment for MIBA (the DRC's diamond mining
parastatal) and other infrastructure and agriculture
projects, such as the rehabilitation of a sugar plant in
Kisangani, Orientale province.
KUWAIT
--------------
5. (U) The Government of Kuwait, through the Kuwait Fund of
Arab Economic Development, has signed a loan agreement with
the GDRC for approximately USD 14.9 million, for the
financing of a road project.
MEECE
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EFIN EAID ETRD EMIN PGOV CG CH IN KU
SUBJECT: LOANS TO DRC FROM CHINA, INDIA, KUWAIT
REF: A. SECSTATE 106631
B. KINSHASA 1621
1. (SBU) Post submits the following in response to reftel A's
request for information on new lending from emerging
bilateral creditors. The GDRC's bilateral lending agreements
include China, India and Kuwait, although detailed
information about the loans is difficult to obtain. (Note:
Even the IMF mission in Kinshasa has been unsuccessful in
determining the overall levels of Chinese, Indian and other
non-permanent Paris Club country loans, grants and other
investments. End note.)
CHINA
--------------
2. (U) A state-owned Chinese company, COVEC (China National
Overseas Engineering Company),has loaned Gecamines, the
DRC's copper/cobalt mining parastatal, USD 60 million as part
of a transaction to reopen Luisha, a Katanga copper mine
(reftel B). COVEC has a 72 percent share in the joint
venture with Gecamines.
3. (U) Purusant to a framework agreement Minister of Finance
Marco Banguli signed September 7, the Government of China
agreed to loan the GDRC USD 32 million to fund the
development of a GSM network that will support the nationwide
growth of Congo China Telecom, a Chinese company. The
15-year loan has a two percent annual interest rate and an
initial five-year repayment grace period.
INDIA
--------------
4. (U) Pursuant to an August 2005 bilateral agreement, the
Government of India extended to the GDRC USD 33.5 million in
export financing credit, and according to a Ministry of
Finance contact, the interest rate is less than 1.5 percent.
The agreement earmarks USD 12.5 million for the purchase of
buses from Tata Motors (an Indian company that is part of the
conglomerate Tata Group),USD 13 million to construct a
cement plant in Orientale province, USD 6 million for
rehabilitation of a manganese mine, USD 2 million for the
purchase of equipment for MIBA (the DRC's diamond mining
parastatal) and other infrastructure and agriculture
projects, such as the rehabilitation of a sugar plant in
Kisangani, Orientale province.
KUWAIT
--------------
5. (U) The Government of Kuwait, through the Kuwait Fund of
Arab Economic Development, has signed a loan agreement with
the GDRC for approximately USD 14.9 million, for the
financing of a road project.
MEECE