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Overview

ICBC provides $837.47 million loan for 750MW Soyo I Combined Cycle Power Plant Construction Project (Linked to Record ID#43782)

Commitments (Constant USD, 2023)$876,161,067
Commitment Year•2015Country of Activity•AngolaDirect Recipient Country of Incorporation•AngolaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 9, 2015
Start (actual)
Dec 31, 2015
End (actual)
Aug 18, 2017
First repayment (originally scheduled)
Jun 7, 2020
Last repayment (originally scheduled)
Jun 5, 2030

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project involved the construction of a 750MW combined cycle power plant in the town of Soyo in Zaire Province. More detailed locational information can be found at https://geohack.toolforge.org/geohack.php?pagename=Soyo_I_Thermal_Power_Station&params=06_07_06_S_12_20_20_E_type:landmark and https://www.openstreetmap.org/way/854082409#map=15/-6.1201/12.3426

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Government Agencies

  • Government of Angola

Implementing agencies

Government Agencies

  • Angola Ministry of Finance
  • Government of Angola

State-owned companies

  • China Machinery Engineering Corporation (CMEC)

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

ICBC provides $837.47 million loan for 750MW Soyo I Combined Cycle Power Plant Construction Project

Grace period•5 yearsGrant element•34.9075%Interest rate (t₀)•4.0654%Interest type•UnknownMaturity•15 years

Narrative

Full Description

Project narrative

On June 9, 2015, the Industrial and Commercial Bank of China (ICBC) and the Government of Angola signed a $837,471,250.75 buyer’s credit loan facility agreement for the 750MW Soyo I Combined Cycle Power Plant Construction Project. The facility has a term (maturity) of 15 years, which includes an initial grace period of five years during which the Government Angola is not required to make principal repayments. The loan's estimated interest rate is 4.0654%. The Government of Angola did not issue a sovereign guarantee for the loan, but it is insured by China Export & Credit Insurance Corporation (Sinosure). The (principal) amount outstanding under the facility was $326.2 million as of December 31, 2017 and $332 million as of December 31, 2021. The availability period applicable to the facility ended in June 2020. The proceeds of the loan were to be used to finance up to 85% of the price of an $985,260,295 commercial contract with China Machinery Engineering Corporation (CMEC). The project involved the construction of a 750MW combined cycle power plant in the town of Soyo in Zaire Province. Construction began on December 31, 2015, and a project completion ceremony was held on August 18, 2017. The plant began delivering power to the grid ahead of schedule on May 19, 2019. This project is closely related to the China Eximbank-financed Soyo-Kapary power transmission line, which is captured via Record ID#43782.

Staff comments

1. The Chinese project title is 索约电站 or 安哥拉SOYO I 联合循环电站建设与安装项目 or 索约电站项目. The Portuguese project title is Construção da Central Térmica do Combinado do Soyo/Zaire. 2. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Angola as 4.0654% in 2015. AidData estimates the interest rate of the ICBC loan that supported the 750MW Soyo I Combined Cycle Power Plant Construction Project by using this figure. See https://www.dropbox.com/scl/fi/qi2hvg1s05nsak3n1n83u/Private-Chinese-Loans-to-Angola-November-2023-Data-Extraction.xlsx?rlkey=0aq7jdxm29ynbw4yh1bn07c7m&dl=0