Global Witness recently gained access to a major amendment to the multi-billion dollar agreement signed between a consortium of Chinese companies and the government of the Democratic Republic of Congo. In the public interest, the organisation is making the document available online today.
The October 2009 amendment relates to the 22 April 2008 collaboration agreement between the Congo, China Railway Group Ltd, Sinohydro Corporation and Zhejiang Huayou Cobalt Co. Ltd. The twelve-page agreement includes clauses originally summarised in a report by the International Monetary Fund and reflected in the Global Witness report, “China and Congo: Friends in Need”, available here.
Key elements of the amendment include:
- Cancellation of the originally-proposed second phase of infrastructure investment
- Removal of the Congo government’s guarantee to reimburse investments for mining projects. The guarantee to reimburse investment for infrastructure projects remains
- Detailing of the values of mining and infrastructure investments, the relative interest rates for the various phases and types of investment, and the allocation of expected revenues from the mining joint venture throughout the project life cycle
- Designation of the Chinese National Development and Reform Commission as the Chinese state body responsible for approval of project developments
- Removal of a guarantee by the Chinese consortium of companies to ensure the project is approved by Chinese authorities within 120 days of the Collaborative Agreement’s signature.