(Ecofin Agency) - In the Democratic Republic of Congo, the government has awarded to a Chinese consortium Busanga’s 240 MW hydropower project. Though it was not revealed, the project could cost $660 million according to what the China-Congo cooperation said last year. Construction is expected to last 5 years.
The power generated by the plant will be mostly sent to the China-Congo mining company (Sicomines) which uses a significant part of the power that DRC imports.
The construction of this plant falls under an important contract that the two countries signed in 2007. According to the terms of this contract, China will build infrastructures in Congo and lend it money, in exchange for mining licenses. The World Bank and International Monetary Fund (IMF) had described this contract as leonine.
The firm to which the project was awarded is yet to be known however a principle agreement was signed in 2011 between Sinohydro and Sicomines regarding the construction of this plant.