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Amendment No. 5 signed, infrastructure funds in DRC increase from 3 to 7 billion USD – Africa Links 24

Amendment No. 5 signed, infrastructure funds in DRC increase from 3 to 7 billion USD – Africa Links 24

Rédaction Africa Links 24 with CP
Published on 2024-03-16 09:47:09

The Democratic Republic of Congo signed, on Thursday, March 14th in Kinshasa, Amendment number 5 to the renegotiated mining contract with the Group of Chinese Companies (GEC). It is worth noting that this contract, signed in April 2008 with the GEC, involved granting cobalt and copper deposits in exchange for the construction of infrastructure. Several international analysts, as well as the national public opinion, had deemed this agreement unfavorable to Congolese interests.

Stepping up on Friday, March 15th in Kinshasa, Freddy Shembo, the Director General of the Agency for the Supervision, Coordination, and Monitoring of Collaboration Agreements (APCSC), expressed his satisfaction with the successful outcome of this amendment.

According to him, the signing of the amendment to the mining contract between the DRC and the Group of Chinese companies (GEC) protects the interests of the Republic.

This fifth Amendment of the “Collaboration Agreement on the development of a mining project and an infrastructure project in the Democratic Republic of the Congo” is an important milestone in the cooperation between the DRC and GEC (Group of Chinese companies).

For instance, Freddy Shembo revealed that this amendment formalizes the Democratic Republic of Congo’s participation in the capital of Sino-Congolaise Hydroélectrique (SICOHYDRO) in Busanga (60% GEC and 40% DRC).

“This renegotiated mining contract with the Group of Chinese companies is very advantageous for the Democratic Republic of Congo. Currently, the amount allocated to infrastructure has increased from 3.2 billion to 7 billion dollars. Secondly, there will no longer be debts as financing will now be direct. There will be no shortfall, with over 300 million dollars annually for infrastructure construction. Additionally, Gecamines, representing the DRC, will now have a voice that matters, the leader of Gecamines will have a say in decision-making. Therefore, the signing of Amendment number 5 of the Sino-Congolese Convention marks the first step towards the development of the country’s infrastructure,” he said.

The Director General of APCSC revealed that the first envelope of over 600 million USD is already available for the start of road construction works in several parts of the country.

Furthermore, the head of APCSC called on the entire Congolese population to trust and support their institution because, he said, the mistakes of the past will not be repeated.

It is worth noting that the Agency for the Supervision, Coordination, and Monitoring of collaboration agreements signed between the DRC and private partners serves as an interface between the different parties and entities interested in projects resulting from agreements or collaborations in basic infrastructure and natural resources.

Freddy Yodi Shembo, the Director General of APCSC, reaffirmed his determination to rigorously monitor the collaboration agreement for the development of a mining project and an infrastructure project in the DRC. He emphasized the importance of cooperation with the Congolese Agency for Major Works and the Technical Control Office, as well as other control structures, to ensure the achievement of the expected results.

Among the highlights of this new version of the convention, it is worth noting that there will no longer be financial shortfalls. Indeed, a minimum amount of 324 million dollars will be available annually for infrastructure construction.

This step marks a significant turning point in cooperation between the DRC and GEC, paving the way for increased development in the mining sector and infrastructure in the Democratic Republic of Congo. The substantial financial commitments and modifications to the convention demonstrate the willingness of both parties to strengthen their partnership and boost the country’s economic growth.

The implementation of these large-scale projects poses a significant challenge for the Agency for the Supervision, Coordination, and Monitoring of collaboration agreements.

Desire Rex Owamba/CONGOPROFOND.NET

Read the original article(French) on Congo-Profond

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