India has agreed to help the Democratic Republic of Congo fund the Kakobola hydroelectric plant, but the credit would come with certain strings.
Export-Import Bank of India General Manager Nadeem Panjetan said Congo will only start repaying the loan worth USD42 million after five years, with an interest rate of 1.75 percent in 20 years.
“These are good terms at very small rates of interest,” he said, as quoted by Reuters.
But the deal requires Congo to source 75 percent of goods and services from India and hire an Indian firm to do the work, though most laborers are likely to be Congolese, Panjetan added.
India signed the loan as part of its USD263 million commitment to Congo. It also subscribed two loans last year totaling USD58.5 million to purchase water pumps, buses and a cement plant.