China CITIC Bank Corporation Limited contributes to $1.2891 billion syndicated buyer's credit loan for New Angola International Airport (NAIA) Construction Project (Linked to Record ID#65402, #65524, #72349)

Project narrative

On May 9, 2018, the Industrial and Commercial Bank of China (ICBC), China CITIC Bank Corporation Limited, and the Government of Angola signed a $1.2891 billion syndicated buyer’s credit loan (BCL) agreement for the New Angola International Airport (NAIA) Construction Project. Record ID#65402 captures ICBC’s estimated contribution and Record ID#105317 captures China CITIC Bank Corporation Limited's estimated contribution. The loan carries the following borrowing terms: a 15-year maturity, an 18-month grace period, and an estimated interest rate of 6.0089%. It is backed by a Sinosure credit insurance policy. The borrower is expected to use the loan proceeds to finance 85% of the cost of a $1.51 billion commercial contract between Angola’s Ministry of Transportation (MINTRANS) and China National Aero-Technology International Engineering Corporation (AVIC-ENG). As of December 2024, the loan remained undrawn. The purpose of the project was to construct and equip the New Angola International Airport (NAIA), which is located approximately 40 km to the southeast of the centre of Luanda, in the Bom Jesus commune, Icole e Bengo municipality in Luanda Province. The airport was designed to be an alternative to the existing Quatro de Fevereiro Airport, another international airport that serves Luanda. The new airport was designed to have an annual capacity of 15 million passengers and 600,000 tons of cargo, with a 4,200 meter runway and 3,800 meter runway, and a 160,000 square meter terminal. The airport was also expected to have 12 aircraft docks, a VIP passenger terminal, and an air traffic control tower. China National Aero-Technology International Engineering Corporation (AVIC-ENG) was the EPC contractor responsible for implementation. Construction on this project began in 2007 under the management of the China International Fund (CIF); however, in February 2019, the Angolan Government announced that it had cancelled the contract with CIF. CIF was replaced by AVIC-Eng. Other contractors and suppliers involved in the project are Metallurgical Corporation of China (CTMCC), Dalian Zongyi Science & Technology Development, Fangda New Materials (Jiangxi), and Beijing Urban Construction Exploration & Surveying Design Research Institute. Angola's Ministry of Transportation (MoT) also appointed Mace Engineering Group as project manager and site supervisor for the project on March 27, 2015. As of August 2019, the project had achieved a 60% completion rate, with plans to commission the airport in 2022. However, due to financial problems, work on the project was halted in 2019. Then, at the second Ordinary Session of the Cabinet Council, held on February 28, 2019, Angola’s Ministry of Transport was directed to conduct technical and financial review of the project in order to guarantee its completion, ensure better alignment with various ministerial departments, and establish a new schedule of actions. Then, in May, 2020, an addendum to the commercial contract between AVIC-Eng and MINTRANS was signed. At the same time, the parties signed a Memorandum of Understanding (MOU) as part of the technical review work to adapt the quality and operational parameters of the new airport. Work resumed on May 17, 2021. Then, on June 17, 2022, the airport organized its first test flight as part of a certification process and it was officially renamed Agostinho Neto International Airport. The project was rescheduled for completion on December 31, 2023. Angolan President Joao Lourenco attended an opening ceremony on November 10, 2023, launching the airport's cargo operations.