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

On December 9, 2015, China Development Bank (CDB) entered into a $15 billion loan agreement (captured via Project 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. Project ID#65749 captures the loan for Lot 1 and Project 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.

Additional details

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 Project ID#65749, a $76 million loan for Cabinda Lot 1 water supply system, and Project ID#65748, the $2.1 billion in financing provided to water and energy sector projects.

Number of official sources

7

Number of total sources

15