IMF Applauds DRC’s Infrastructure Commitment with Sicomines
Gabriel Leost, the IMF representative in the Democratic Republic of Congo (DRC), commended the government’s dedication to including $324 million annually in the finance law over seven years for road infrastructure construction.
This commitment is part of a contract between the DRC and the Chinese Enterprise Group (GEC), specifically Sino-Congolese Mines (Sicomines).
“This marks a significant achievement compared to previous years. The authorities have published most of the mining contracts, including the latest amendment with Sicomines.
As part of the latest review, they committed to incorporating revenues and expenditures related to the Sicomines project into the finance law and the amending law, eliminating extrabudgetary management,” said Leost in a recent interview in Kinshasa.
To ensure transparency and accountability, Leost recommended rigorous parliamentary oversight and involvement of the Court of Auditors to scrutinize investments.
He emphasized the importance of annual meetings between Congolese and Chinese stakeholders to review project progress, urging the authorities to publish comprehensive reports to inform the public about investment advancements under this contract.
Leost also highlighted a shift in the financing structure from debt to profit sharing. “Previously, there was a loan from the Exim Bank of China, but now the arrangement resembles profit-sharing. Over $300 million annually will be allocated to infrastructure spending, without accruing additional debt,” he explained.
Regarding project execution, Leost emphasized the government’s responsibility to organize and oversee work execution through designated agencies or the Ministry of Infrastructure and Public Works. “We encourage the government to maintain these funds in a dedicated account at the central bank,” he added.
Signed at the beginning of 2024, the contract outlines a total investment of $7 billion over 17 years, with $1.5 billion already borrowed.
Disbursements for 2024 were set at $624 million, with subsequent years earmarked for $324 million annually to fund crucial road infrastructure development.
