Skip to content
AidData logo

Overview

CDB provides $76 million loan for Cabinda Water Supply System (Lot 2) Project (Linked to Record ID#65719, #65748, and #65749)

Commitment Year•2016Country of Activity•AngolaDirect Recipient Country of Incorporation•AngolaSector•Water Supply And SanitationFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2016
End (actual)
Nov 7, 2020
First repayment
Dec 31, 2018
Last repayment
Dec 29, 2027

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

This project involved the construction of a new water supply system in the city of Cabinda. More detailed locational information can be found at https://www.openstreetmap.org/node/279009752#map=11/-5.5579/12.1921

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 Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Government Agencies

  • Government of Angola

Implementing agencies

State-owned companies

  • China Railway International Group Co., Ltd. (CRIG)

Collateral providers

State-owned companies

  • Sonangol E.P.

Loan desecription

CDB provides $76 million loan for Cabinda Water Supply System (Lot 2) Project

Grace period•3 yearsInterest type•UnknownMaturity•12 years

Collateral

All subsidiary loans under the $15 billion oil prepayment facility agreement are collateralized against (1) an assignment of rights by Sonangol under an offtake contract (i.e., an oil sale and purchase contract between Sonangol and a Chinese oil buyer), and (2) a collection account charge over a bank account into which proceeds due to Sonangol from the Chinese oil buyer under an offtake contract are credited; and (c) a minimum cash balance of approximately $1.5 billion in an escrow account known as the Debt Service Reserve Account (DSRA).

Narrative

Full Description

Project narrative

On December 9, 2015, China Development Bank (CDB) entered into a $15 billion loan agreement (captured via Record ID#66847) with the Government of Angola. The loan is an oil prepayment facility with repayments being serviced through receivables from a designated oil contract. The pricing structure of the loan allows the Government of Angola to benefit from an upside in an increase in the price of oil. The loan has a maturity of 12 years and its availability period expired on December 9, 2017. As a condition of the loan agreement, the lender required the borrower to maintain a minimum cash balance of approximately $1.5 billion in an escrow account known as the Debt Service Reserve Account (DSRA). The proceeds of the loan were used to be used to recapitalize Sonangol, help Sonangol prepay some of its outstanding debts to CDB, and finance a series of public investment projects. As of December 31, 2017, the loan had achieved a 100% disbursement rate. Repayments commenced in 2018. The loan’s amount outstanding was $14.9 billion in December 2018, $14.5 billion as of June 30, 2019, and $11.3 billion as of December 31, 2021. One of the subsidiary loans approved through the oil prepayment facility was a $76 million loan in 2016 for the Cabinda Water Supply System (Lot 1) Project. The proceeds of this loan were used to finance a $120,199,855.21 commercial contract with China Railway 20th Construction Bureau Co., Limited (CR20). Another one of the subsidiary loans approved through this facility was a $76 million loan in 2016 for the Cabinda Water Supply System (Lot 2) Project. The proceeds of this loan were used to finance a $88,843,371.24 commercial contract with China Railway Construction (International) Limited. Record ID#65749 captures the loan for Lot 1 and Record ID#65750 captures the loan for Lot 2. The Cabinda Water Supply System (Lots 1 and 2) involved the construction of a new water supply system in the city of Cabinda. More specifically, it involved the construction and installation of 300 intake water pumping stations, 4 water towers, several water treatment plants, 4 reservoirs, 800 kilometers of piping, and 30,000 household water supply connections. The inauguration ceremony for the water intake system was held on November 7, 2020.

Staff comments

1. The Portuguese project title is Construção de novo sistema de abastecimento de água da Cidade de Cabinda - Lote 2. The Chinese project title is 卡宾达供水项目. 2. This project is linked to Record ID#65749, a $76 million loan for Cabinda Lot 1 water supply system, and Record ID#65748, the $2.1 billion in financing provided to water and energy sector projects.