A US$9 billion minerals-for-infrastructure contract between China and the Democratic Republic of Congo is faltering due to pressure from Western donors, the Financial Times reported. Congo agreed to award China the right to develop a copper and cobalt mine in exchange for roads, railways, hospitals and universities built by Chinese state firms. However, the Paris Club of creditors and the IMF say they will not offer relief on Congo’s historic debt of US$11 billion if the country accepts Chinese financing on commercial terms. The IMF has called on Congo to ensure that the final agreement with China "is consistent with debt sustainability." The major concern is that, under the deal, the Chinese parties would receive financial guarantees tied to Congolese government revenues. Victor Kasongo, Congo’s deputy minister of mines, said the nation was open to donors’ concerns and wanted to ensure the deal met the criteria for "fair commerce."
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved