Project ID: 34750

China Eximbank provides $85 million buyer’s credit loan for Package 5 of the 149 km N’Zeto-Soyo Highway Construction Project (Linked to Project ID#65330, #73903)

Commitment amount

$ 90780792.89

Constant 2017 USD

Summary

Funding agency [Type]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Angola

Sector

Transport and storage (Code: 210)

Flow type

Export Buyer's Credit

Concessional

Vague

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Implementation

2009

2009-04-19

Actual start

Commitment year

2011

Completion

2017

2017-08-17

Actual

NOTE: This project began implementation and then later secured financing from a Chinese funding agency to continue project implementation

Geography

Description

In 2011, the Government of Angola reportedly drew down on one or more its lines of credit (master loan facility agreements) with China Eximbank to obtain two buyer’s credit loans for the 149 km N’Zeto-Soyo Highway Construction Project: a $46 million buyer’s credit loan for Package 7 of the N’Zeto-Soyo Highway Construction Project and an $85 million buyer’s credit loan for Package 5 of the N’Zeto-Soyo Highway Construction Project.Package 5 involved the construction of a 96.9 km two-way, four-lane, highway segment (Km 8 + 800 to Km 104 + 800) in Zaire Province. Package 7 involved the construction of bridges over the Lucunga, Quimiana, Moanda, Sango, Luculo, Bua, Quimbuenbo and Kifuma rivers. These bridges collectively measure 2.4 km in length.Sinohydro Engineering Bureau 4 Co,. Ltd was the contract responsible for implementation. It was reported to have signed approximately a $600 million construction contract with the Government of Angola on 1 December, 2008 (See: 中国水电集团6亿美元签约安哥拉恩-索公路项目). However, it appears as though Presidential Order n°32/14 from 2 April, 2014 approved the commercial contract between National Institute of Estradas de Angola (INEA) and the company Sinohydro, in the equivalent amount in Kwanzas in the amount of $514,578,031.66 (See: Despacho Presidencial n.º 32/14). A 2016 report from República de Angola Tribunal de Contas records the contract amount as $605,385,919.60 (See: Parecer sobre a Conta Geral do Estado 2016).Construction began on 19 April, 2009; however, due to “financial difficulties” (which appear to be in line with the increased construction contract costs), construction stopped for a number of years until the Government of Angola and China Eximbank loan signed a third buyer’s credit loan agreement worth $509,433,034.27 on 25 September, 2015 for Package 5 of the N’Zeto-Soyo Highway Construction Project (See: 中国水电承建的安哥拉索约公路主体工程开工 and THE REPUBLIC OF ANGOLA U.S.$500,000,000 9.375 per cent. Notes due 2048 and Parecer sobre a Conta Geral do Estado 2016). Construction restarted in May 2016, and the road was opened to traffic on 17 August, 2017 (See: The Right Side of N'zeto–Soyo Highway in Angola was open to traffic).Project ID#34750 captures the $85 million loan from China Eximbank. Project ID#73903 captures the $46 million loan from China Eximbank. Project ID# 65330 captures the $509,433,034.27 loan from China Eximbank.

Additional details

The Chinese project title is 恩赞托-索尤公路 or 安哥拉索约公路 or 恩泽托-索约公路 or 安哥拉索约公路项目一期二阶段.The Portuguese project title is Construção da Auto-estrada N’Zeto/Soyo Pacote 5.Sinohydro reports that September 25, 2008 was the project start date (prior to the signing of the construction contract on On December 1, 2008). However, AidData relies on the project start date (April 19, 2009) that follows the signing of the construction contract.This project may have been financed through the 2007 China Eximbank MLFA (project #31742) or the 2009 China Eximbank MLFA (project #34031).

Number of official sources

13

Number of unofficial sources

6

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Angola [Government Agency]

Implementing agencies [Type]

Angola National Roads Institute (INEA) [Government Agency]; Government of Angola [Government Agency]; Sinohydro Engineering Bureau 4 Co., Ltd. [State-owned Company]

Loan type

No Information

Gurarantee provided

No

Insurance provided

No