Narrative
Full Description
Project narrative
On September 4, 2018, Bank of China (BOC) and the Government of Angola signed a $148,721,360 buyer's credit loan (BCL) agreement for the Luanda New International Airport Railway Branch Line Project. The BCL agreement entered into force on September 4, 2018 but it is unclear when the financing agreement itself was signed. The estimated borrowing terms of the loan are as follows: a 2.6102-year grace period, a 15.6595-year maturity, and a 6.0089% interest rate. Sinosure provided insurance for this loan. The proceeds of the loan were to be used by the borrower to partially finance a $162,473,143 commercial (EPC) contract signed on July 10, 2017 between Angola’s Ministry of Transportation, China Hyway Group Limited, and Tianjin Oubaiwei Corp. Ltd. The purpose of the project is to construct a 17.4 km rail link between New Luanda International Airport (also known as New Angola International Airport or NAIL) and Luanda City. More specifically, it involves the construction of a second railway line between Baia station and NAIL that runs parallel to the existing Luanda Railway Line known as Caminho-de-Ferro de Luanda (CFL). China Hyway Group Limited and Tianjin Oubaiwei Corp. Ltd. are the EPC contractors responsible for implementation. Construction began on July 10, 2017. Then, on February 3, 2022, the first 32-meter T beam of the airport bridge was laid. ICBC also financed the construction of this airport (as captured via Record ID#65402).
Staff comments
1. The Portuguese project title is Ramal Ferroviário de Ligação ao NAIL. The Chinese project title is 罗安达新国际机场铁路支线项目. 2. SAIS-CARI and Boston University identify the loan commitment year as 2017. AidData relies on the commitment year (2018) that is identified by Angola’s Ministry of Finance. 3. 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 6.0089% in 2018. AidData estimates the interest rate of the ICBC loan that supported the New Angola International Airport (NAIA) 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 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Angola was 15.6595 years in 2018. AidData estimates the maturity of the ICBC loan that supported the New Angola International Airport (NAIA) 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 5. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Angola was 2.6102 years in 2018. AidData estimates the grace period of the ICBC loan that supported the New Angola International Airport (NAIA) 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 6. This project is closely related to the 2016 Bungo-Baia Double Railway Track Construction Project (captured via Record ID#67414).