In September 2007 the DRC signed several agreements with the Chinese government for various infrastructure projects. The Chinese have committed more than $9 billion in exchange for access to commodities including copper and cobalt. Roughly $3 billion of this investment is for mine development; the other $6 billion will be used for infrastructure projects including the construction of 3200 km of railway tracks, 4000 km of roads, two hydroelectric dams, airports, schools and hospitals.
In May 2009 the DRC adapted the deal to appease the International Monetary Fund (IMF). The net result is that the $6 billion infrastructure investment will be split into two $3 billion tranches whereby second-phase deliveries will be considered only after completion of the first.
While there are critics of this deal and pundits who claim this is the “second colonisation” of the DRC, this barter deal is widely seen as a key catalyst to help jump start the economy and rebuild core infrastructure that has been neglected for decades.
Kilo is a primary beneficiary of some of this newly developed infrastructure including rehabilitated roads around its Somituri project.
