Chinese firms cut cost of DRC infrastructure deal
Chinese companies have agreed with the Democratic Republic of Congo to cut a $9 billion infrastructure and loan deal to $6 billion, which could clear the way for debt relief after the IMF worried the original deal would sink the nation deeper into debt. Also cut are Congo government financial guarantees connected to the country’s mineral resources. The IMF had delayed scrapping most of the $10 billion the Congo owes it pending the deal’s revision. The original terms of the deal saw Chinese companies constructing roads, railways, schools and hospitals. An additional $3 billion was allotted for the construction of a copper and cobalt mine to repay the Chinese loans. Meanwhile, about 25 mining contracts involving copper, diamonds and gold could be cancelled if companies fail to present the results of feasibility studies by a December deadline.
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