Through China’s Belt and Road Initiative, roads, railways, bridges, hospitals, schools and airports have been constructed in Africa. The Belt and Road Initiative was launched in 2013 by the Chinese Leader, Xi Jinping.
The proposed construction of an airport at Mammah Airport in Koya Chiefdom in PortLoko district was part of the Road initiative. To bring the project to reality, Sierra Leone went into an agreement with China amounting to USD200m which was cancelled by SLPP (Sierra Leone People’s Party) came to power in April 2018. It is the view of government that the loan falls short of value for money.
However, information filtering through the public that holds SLPP Government is secretly negotiating a USD1.5Billion loan with the Chinese Government for the construction of the Lungi Bridge. The Chinese are using the Lungi-Bridge loan negotiation to pressurise government into leasing the Pepel Rail and Port to the Chinese company, Kingho.
Government of Sierra Leone already has signed an agreement with ARISE IIP for the management of the Pepel Rail and Port. The agreement was approved by Cabinet in January, 2023 after the Kingho agreement had been lawfully terminated in the same month.
Currently, Sierra Leone owes China USD67m for financing several fibre-optic and telecoms projects including the National Fibre Backbone Phase 2 Project. The IMF has classified Sierra Leone as a high risk country in debt distress.
The country’s borrowing space is very limited, according to an IMF official in Freetown. Recently, the African Development Bank (AfDB) sent a technical team to Freetown to conduct a study with a view of advising government on the financing model for the Lungi Bridge. The team is yet to produce its report.
Sierra Leone’s external debt is unmanageable. It is putting pressure on the government’s meager domestic revenue meant to pay for social services like healthcare, electricity and free quality education.
A Professor of International Relations in the US recently warned African governments to be very wary of Chinese loans in the name of financing infrastructure projects. The Chinese Government is now giving soft loans to some poor African countries to force them comply with their demands.
With the Lungi Bridge loan well under way, Sierra Leone Government is arm-twisted to hand over control of the Pepel Rail and Port to Kingho against the interest of the people of this country.
Sierra Leone Government is turning to China for help since the US put on hold aid meant for the poor country especially disbursements under the MCC (Millenium Challenge Corporation) compact. It has been confirmed that, President Julius Maada Bio is planning a state visit to China before the end of the year.
Western diplomats in Freetown believe that President Julius Maada Bio cannot leave for China if the Kingho Pepel Rail and Port agreement is not concluded and signed. The Chinese are aggressively pursuing their policy of debt diplomacy in poor African countries like Sierra Leone.