China Eximbank provides $83.909 million buyer’s credit loan for construction and equipping of technical institutes, administrative and management institutes, and secondary schools in Luanda, Bengo, Cabinda, Namibe, and Zaire Provinces (Linked to Project ID#42029 and #85457)
Adjusted commitment amount
Constant 2021 USD
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Education (Code: 110)
Level of public liability
Central government debt
On November 28, 2003, the Chinese Government and the Angolan Government 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 March 2, 2004, China Eximbank entered into a $2 billion Master Loan Facility Agreement (MLFA) with the Government of Angola. All borrowings under the MLFA, which is an oil prepayment facility, carried the following estimated borrowing terms: a 21.5 maturity, a 1.5 year grace period, an interest rate of 3-month LIBOR plus a 1.5% margin, a 0.3% management fee, and a 0.3% commitment fee. The facility was split between a $1.0 billion Phase I facility and a $1.0 billion Phase II facility. Availability of the Phase II facility was subject to confirmation by the lender on or prior to the date falling five years after satisfaction of the conditions precedent to the MLFA and was made available by China Eximbank during that period. The MLFA is a framework agreement under which the Government of Angola and China Eximbank may conclude individual buyer’s credit loan agreements (ILAs or subsidiary loan agreements) for the purpose of financing up to 90% of the contract price owing to certain contractors in respect of certain contracts. The first tranche of the facility was released in December 2004. The facility was fully drawn down as of December 31, 2017. Sonangol provided a source of collateral 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. 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. Loan disbursements were made on a project-by-project basis. Tendering, management and payments were jointly managed by the Chinese Ministry of Commerce and the Angolan Ministry of Finance (which coordinated the various Angolan line ministries responsible for supervising the projects). The Angolan Ministry of Finance submitted the projects for tendering; China Eximbank selected Chinese candidate firms for the projects; and a joint commission made the final firm selections. The process was managed by an office in the Angolan Ministry of Finance -- known as Gabinete de Apoio Técnico (GAT) -- that was specifically created to manage the MLFA with China Eximbank. In July 2006, China Eximbank and the Government of Angola signed a $83,909,196.70 subsidiary buyer’s credit loan agreement under the MLFA for the construction and equipping of technical institutes, administrative and management institutes, and secondary schools in Luanda, Bengo, Cabinda, Namibe, and Zaire Provinces. The proceeds of this loan were used to partially finance a $93,232,440.78 commercial (EPC) contract with Sinomach, which was signed on July 27, 2006. The purpose of the project was to construct and equip technical institutes, administrative and management institutes, and secondary schools in Luanda, Bengo, Cabinda, Namibe, and Zaire Provinces. Sinomach was the EPC contractor responsible for project implementation. The EPC contract supporting this project went into effect on July 17, 2007. The project had achieved an 84% completion rate as of June 2008. In total, 863 Angolan works and 738 Chinese workers were employed to support the implementation of this project.
1. The Portuguese project title is Construção e Apetrechamento de 4 Institutos Politécnicos em Luanda, Bengo, Cabinda e Namibe, de 5 Institutos de Administração e Gestão em Luanda (2), Benguela (1), Zaire (1) e Namibe (1) e de 6 Escolas Secundárias em Luanda (2), Benguela (2) e Namibe (2). The Chinese project title is 包括纳米贝理工学院、行政学院、中学，扎伊尔行政学院，卡宾达省理工学院. 2. The project constitutes Phase 2 of the commercial contract between Sinomach and the Ministry of Education in Angola to construct 28 schools (captured via Project ID#85457), which started on July 30, 2007 and was planned to reach completion within 13 months. 3. Additional information about the implementation status of each technical institute, administrative and management institute, and school as of June 2008 can be found on pages 9-13 of "LINHA DE CRÉDITO COM O EXIMBANK DA CHINA RELATÓRIO DAS ACTIVIDADES DESENVOLVIDAS II TRIMESTRE DE 2008". 4. The 2003 framework agreement (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) specified that Sinosure would be signing relevant agreements with the Government of Angola. Therefore, AidData has coded Sinosure as an accountable agency and as providing insurance for the loan. 5. AidData considers this loan to be collateralized in a de facto sense. The cash deposited by the Angolan Ministry of Finance into a bank account controlled by China Eximbank is, for all intents and purposes, a source of collateral. This is true even if the lender does not have a formal security interest in the account. 6. AidData relies on the maturity, grace period, and interest rate that are recorded in the World Bank's Debt Reporting System (a 3.0899% interest rate, a 21.5 year maturity, and a 1.5 year grace period). See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 and https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 and https://www.dropbox.com/s/0vpohwt96l40o19/World%20Bank%20DRS%20Extract%20Sep%202021%20--%20Chinese%20Loan%20Commitments%20from%202013%20to%202019.xlsx?dl=0 7. According to another World Bank source (https://documents1.worldbank.org/curated/pt/122781468002433388/pdf/397100v20ER0P01disclosed0Feb0602008.pdf), all borrowings under the MLFA carried a management fee (comissão de gestão) of 0.3%; a commitment fee (comissão de imobilização) of 0.3%, and an installation fee (comissão de instalação) of 1%.
Number of official sources
Number of total sources
Direct receiving agencies [Type]
Government of Angola [Government Agency]
Implementing agencies [Type]
China National Machinery Industry Corporation (Sinomach) [State-owned Company]
Angola Ministry of Education [Government Agency]
Insurance provider [Type]
China Export & Credit Insurance Corporation (Sinosure) [State-owned Company]
Collateral provider [Type]
Sociedade Nacional de Combustiveis de Angola (Sonangol) [State-owned Company]
Sonangol provided a source of collateral 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. The volume of oil to be sold to UNIPEC each month for repayment of the loan varied according to market oil prices.
Grant element (OECD Grant-Equiv)