China to lend Congo $5 billion in latest Africa foray

By Joe Bavier

KINSHASA (Reuters) - China plans to lend the Democratic Republic of Congo $5 billion to modernize its decrepit infrastructure and rich but deteriorated mining sector in another huge Chinese investment foray in Africa.

Congolese officials said the draft accord signed on Monday foresaw Chinese companies gaining copper/cobalt, gold and nickel concessions under repayment deals that would also include toll revenues from the roads and railways to be constructed.

The proposed loan earmarks $3 billion for strategic highway and railroad projects that would link the country's mineral-rich but remote interior to its southern neighbors and the international shipping routes of the Atlantic.

The remaining $2 billion targets the revival of the former Belgian colony's once-mighty mining sector -- a treasure trove of copper, cobalt, gold, nickel, uranium and diamonds still to be fully tapped -- whose production has been decimated by war, foreign invasions and years of graft, pilfering and neglect.

"This agreement will allow us to carry out important large-scale projects," Congolese Infrastructure and Public Works Minister Pierre Lumbi told Reuters.

"What we have are repayment methods in terms of mining concessions, but also others like toll revenues," he added.

The draft accord signed comes with a promise of a possible additional $3.5 billion of funds still to be allocated.

If fully disbursed, the loan will be one of the biggest Chinese financial commitments on the African continent.