Chinese Government provides $6 million interest-free loan for Luanda General Hospital Construction Project (linked to Umbrella #53184)

On 23 May 2001, a Chinese Government delegation signed several agreements with the Angolan Government during a three-day visit to Luanda. One of the agreements was a $6 million interest interest-free loan agreement for the Luanda General Hospital Construction Project. Angola's Deputy Minister of Foreign Affairs, George Chicoty, signed the agreement with China's Vice Minister of External Trade and Economic Cooperation, Zhang Xiang. This project involved the construction of a 100-bed Luanda General Hospital (Hospital Geral de Luanda) in the Kilamba Kiaxi municipality of Luanda. The hospital offers specialized services in laryngology, dermatology, neurology, opthalmology and physiotherapy. The proceeds from the loan were used to partially finance an $8 million contract with China Overseas Engineering Group (COVEC or 中国海外工程有限责任公司). The groundbreaking ceremony was held on May 26, 2004. Construction began in July 2004 and was completed in 15 months. The hospital was inaugurated on 3 February 2006. However, in 2010, COVEC was criticized for the poor quality of construction after cracks developed in the ceilings and walls of the hospital. Chinese and Angolan officials subsequently met for several rounds of talks, and the Chinese Government agreed to fund the rehabilitation and expansion of the hospital, including the construction of temporary wards and sewage systems for patients to ensure the continuing operation of the hospital (see Umbrella Project #53184).

Additional details

The Chinese project title is 罗安达总医院. The Portuguese project title is Hospital Geral de Luanda. Since loan terms for the interest-free loan are unavailable, AidData has set maturity period to 20 years by default and grace period to 10 years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm) which states that the maturity period of interest-free loans is 20 years, with a drawdown period of 5 years, grace period of 5 years, and repayment over 10 years. AidData treats the drawdown period as providing 5 years of additional grace.

Number of official sources

7

Number of total sources

14