PORT AUTHORITY CLAIMS CHINESE RAIL OFFER STILL ON

UNCLAS KINSHASA 000340 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ELTN EWWT EINV ECON PGOV CH CG SUBJECT: PORT AUTHORITY CLAIMS CHINESE RAIL OFFER STILL ON TABLE REF: 06 KINSHASA 1379 ¶1. (SBU) DRC's port authority, ONATRA, claims to be discussing plans with the Chinese government for rehabilitation of the Matadi-Kinshasa railroad system. ONATRA's CEO, Daniel Bikindu, shared these plans with EconOff and a visiting USTDA representative on March 6. ¶2. (SBU) During his four-day visit to the DRC, a USTDA official and EconOff met with ONATRA CEO Bikindu to discuss potential infrastructure projects. Bikindu said ONATRA has signed an agreement with the Chinese government to rehabilitate the 230-mile Matadi line, including plans to renovate locomotives, wagons, passenger cars, workshops and the line itself. Bikindu said the contract includes an option to negotiate a joint-venture management agreement between the Chinese and ONATRA and that the financing would be in the form of a USD 235 million loan from the Chinese Export-Import Bank. According to him, a Canadian consulting firm has already conducted a feasibility study. ¶3. (SBU) According to Bikindu, a Chinese commission is considering the agreement. However, a Belgian diplomat who works closely with the Ministry of Transport and ONATRA told EconOff no agreement exists yet and the Congolese and Chinese governments remain in negotiations. ¶4. (SBU) Bikindu said ONATRA's plans include consideration of the development of a deep water port on the Atlantic. He also said ONATRA is continuing its cargo and passenger river transport, although it has made only seven round-trips from Kinshasa to Kisangani since it relaunched service in July ¶2006. (Note: An ECON Section contact whose company has 60 transport boats on Congolese rivers told us ONATRA made only one round-trip between Kinshasa and Kisangani, to great fanfare, in late 2006 and has not made this trip again. End note.) MEECE