DRC Seeks Additional $17bln Financing in Infrastructure From China Deal
The Inspection Generale des Finances (IGF), Congo’s state auditor, has demanded an increase in investment of $17 billion from Chinese investors in a 2008 infrastructure-for-minerals deal, which is currently being renegotiated.
The deal was struck by President Felix Tshisekedi’s predecessor, Joseph Kabila, and involved Sinohydro Corp and China Railway Group Limited building roads and hospitals in exchange for a 68% stake in Sicomines, a cobalt and copper joint venture with Congo’s state mining company, Gecamines.
The Chinese investors had committed to spending $3 billion on infrastructure projects, but the IGF has requested that the investment be raised to $20 billion to reflect the value of the mining concessions provided by Gecamines.
According to a report , Sicomines has only spent $822 million on infrastructure investments so far, and the auditor has called for an immediate $1 billion investment, as well as a commitment that 50% of the workforce on infrastructure projects be Congolese.
Among a list of 16 demands, the IGF called for the renegotiation of the Convention to balance the duties and benefits of both parties and bring them in line with the value of their respective contributions.
The auditor also demanded that Gecamines be given a larger stake in Sicomines, as it currently holds only 32%.
A Sicomines official did not immediately comment on the situation, but has previously defended the deal, claiming that it has driven development in Congo and that the company will invest more as production increases.
Congo’s finance minister, Nicolas Kazadi, has stated that the government aims to reach an agreement on the Sicomines deal this year.
