Project ID: 34796

China Eximbank provides $26.26 million buyer’s credit loan for Malanje Hospital Rehabilitation and Equipping Project (linked to #42029)

Commitment amount

$ 49474992.04

Constant 2017 USD

Summary

Funding agency [Type]

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

Recipient

Angola

Sector

Health (Code: 120)

Flow type

Export Buyer's Credit

Concessional

Yes

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

Commitment year

2005

Implementation

2006

2006-03-09

Planned start

2006-03-09

Actual start

Completion

2008

2007-12-09

Planned

2008-08-03

Actual

Geography

Description

On 28 November, 2003, China and Angola signed a framework agreement pertaining to a special economic cooperation arrangement (Agreement name in Chinese: 中华人民共和国商务部与安哥拉共和国财政部关于两国经贸合作特殊安排的框架协议). Following the signing of the framework agreement, on 2 March, 2004, China Eximbank and the Government of Angola signed a $2 billion Master Loan Facility Agreement (MLFA). All of the subsidiary buyer’s credit loans approved through this MLFA carried the following terms: an interest rate of 3-month LIBOR (1.112% at the time that the MLFA was signed) plus a 1.5% margin- totaling 2.612%, a 22 year maturity period, and 5 year grace period (see linked Project ID#42029). According to the World Bank, this MLFA has a management commission fee of 0.3%, an installation commission fee of 1%; and an immobilization fee of 0.3% (See: Angola Public Expenditure Review (In Two Volumes) Volume II: Sectoral Review, p. 19).Sonangol provided a source of collateral for loans under the MLFA, and repayments were made with the proceeds of oil sales from Sonangol to UNIPEC (China international United Petroleum & Chemicals Co. Ltd, Sinopec group), which were deposited in an Angolan Ministry of Finance (MINFIN) account at China Eximbank (See: China’s Oil Diplomacy: Comparing Chinese Economic Statecraft in Angola and Brazil, p. 148). The volume of oil to be sold to UNIPEC each month for repayment of the loan varied according to market oil prices. Under the agreement, 70% of works have to be contracted with Chinese companies and the same proportion of construction material, equipment and labour has to be contracted in China (See: China’s Oil Diplomacy: Comparing Chinese Economic Statecraft in Angola and Brazil, p. 149). Then, in March 2005, China Eximbank and the Government of Angola signed a $26,266,949.10 subsidiary buyer’s credit loan agreement for the Malanje Hospital Rehabilitation and Equipping Project (See: UNCOVERING AGENCY: ANGOLA’S MANAGEMENT OF RELATIONS WITH CHINA, p. 279). The proceeds of this loan were used to partially finance a $29,185,499.00 commercial contract between Sinohydro and the Angola Ministry of Health, which was signed on 9 March, 2005 (See: UNCOVERING AGENCY: ANGOLA’S MANAGEMENT OF RELATIONS WITH CHINA, p. 279). The purpose of this project, which employed 49 Angolan workers and 33 Chinese workers, was to rehabilitate a 175-bed hospital in Caculama City within Malanje (Malange) Province (See: LINHA DE CRÉDITO COM O EXIM BANK DA CHINA RELATÓRIO DAS ACTIVIDADES DESENVOLVIDAS II TRIMESTRE DE 2007).The seven-story building covers an area of 54.4 thousand square meters, with areas for visits, hospitalizations, surgeries, mortuary, maternity, administrative services, dining and laundry. The hospital also has an oxygen plant, incinerator, area for generators, new water networks, sanitation, electricity and mechanics. Among its specialties are ophthalmology and dentistry. Through this project, the hospital was to be outfitted with X-ray rooms, clinical laboratories, ultrasound equipment and electrocardiogram equipment.The contract for this project was scheduled to go into effect on 9 March, 2006; and the scheduled handover date was 9 December, 2007 (See: LINHA DE CRÉDITO COM O EXIM BANK DA CHINA RELATÓRIO DAS ACTIVIDADES DESENVOLVIDAS II TRIMESTRE DE 2007). According to Sinohydro, construction began on 9 March, 2006 and ended on 3 August, 2008 (See: Malanje National Hospital (completed project)).

Additional details

This project is also known as the Malange National Hospital Project. The Portuguese project title is Reabilitação e Apetrechamento do Hospital de Malange. The project is referred to as 马兰热医院修复项目 in Chinese.

Number of official sources

4

Number of unofficial sources

3

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Angola [Government Agency]

Implementing agencies [Type]

Angola Ministry of Health [Government Agency]; SinoHydro [State-owned Company]

Accountable agencies [Type]

Loan type

Concessional

Maturity

22 years

Interest rate

2.612%

Grace period

5 years

Management fee

0.3

Grant element

50.58856436%

Gurarantee provided

No

Insurance provided

Yes

Collateralized/securitized

Yes

Collateral

Sonangol provided a source of collateral for loans under the MLFA, and repayments were made with the proceeds of oil sales from Sonangol to UNIPEC (China international United Petroleum & Chemicals Co. Ltd, Sinopec group), which were deposited in an Angolan Ministry of Finance (MINFIN) account at China Eximbank (See: China’s Oil Diplomacy: Comparing Chinese Economic Statecraft in Angola and Brazil, p. 148). The volume of oil to be sold to UNIPEC each month for repayment of the loan varied according to market oil prices. Under the agreement, 70% of works have to be contracted with Chinese companies and the same proportion of construction material, equipment and labour has to be contracted in China (See: China’s Oil Diplomacy: Comparing Chinese Economic Statecraft in Angola and Brazil, p. 149).