IMF’s Ames Flies to Congo After China Signs Agreement

By Michael Kavanagh

Oct. 29 (Bloomberg) -- The International Monetary Fund’s Congo representative, Brian Ames, is flying to the Democratic Republic of Congo after China signed an amended agreement on mining and infrastucture with the central African country, Ames’s office confirmed by phone today.

Congo’s Deputy Mines Minister Victor Kasongo told Bloomberg News today that the agreement, which originally provided for spending of $9 billion, was signed by China four days ago.

“I have not seen the amended contract, but I expect the loan to be $6 billion,” Kasongo said today in a text message to Bloomberg News. “The IMF must now vet the contract.”

Congo needed the changes in order to move closer to debt relief from the Paris Club and to have a $600-million IMF loan program approved. The Washington-based lender previously said the deal could add to Congo’s $11 billion foreign debt.

China agreed in January 2008 to help rebuild the war-torn central African country in return for control of 10 million metric tons of copper and 600,000 tons of cobalt. The changes mean Congo won’t be liable for the Chinese investment into roads, railways, hospitals and universities, according to the IMF.

Four major infrastructure projects are nearing completion and the focus now will be on developing the mine with which the Chinese companies hope to recoup their investment, Wu Zexian, China’s ambassador to the central African country, said. in an Oct. 1 speech in Kinshasa.

To contact the reporter on this story: Michael Kavanagh in Kinshasa at via the Johannesburg bureau at abolleurs@bloomberg.net.

Last Updated: October 29, 2009 13:04 EDT