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Overview

ICBC provides $550 million export buyer's credit loan for Phase 2 of Kilamba Kiaxi Housing Construction Project (Linked to Record ID#47101)

Commitments (Constant USD, 2023)$599,896,865
Commitment Year•2016Country of Activity•AngolaDirect Recipient Country of Incorporation•AngolaSector•Other Social Infrastructure And ServicesFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 8, 2016
Start (actual)
Apr 24, 2017
End (planned)
Aug 31, 2019
First repayment (originally scheduled)
Dec 8, 2019
Last repayment (originally scheduled)
Dec 4, 2032

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project involved the construction of the Kilamba Kiaxi housing district, which is 30 kilometers southwest of Luanda. More detailed locational information can be found at https://www.openstreetmap.org/way/150637890#map=13/-9.0047/13.2749 and http://www.cici.citic.com/content/details_47_127.html.

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

State-owned companies

  • CITIC Construction Co., Ltd.

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

ICBC provides $550 million export buyer's credit loan for Phase 2 of Kilamba Kiaxi Housing Construction Project

Grace period•3 yearsInterest type•UnknownMaturity•16 years

Narrative

Full Description

Project narrative

On December 8, 2016, the Industrial and Commercial Bank of China (ICBC) signed a $550 million loan facility agreement with the Government of Angola for Phase 2 of Kilamba Kiaxi Housing Construction Project. The facility has a 16-year maturity and a 3-year grace period, but its interest rate is unknown. Repayments were scheduled to commence in December 2019 (at the end of the loan availability period). The proceeds of the loan were to be used by the borrower finance up to 85% of the cost of a $607 million commercial contract CITIC Construction as well as 85% of the cost of a Sinosure credit insurance policy (premium). As of March 31, 2022, the loan had not yet disbursed. The purpose of the project is to design and build 10,000 social housing units and related infrastructure-- including roads, water supply and drainage systems, sewage systems, electric lighting systems, reclaimed water systems, afforestation, traffic signals, natural gas systems, and telecommunication systems-- in Kilamba New City (Kilamba Kiaxi Housing District). CITIC Construction — a subsidiary of CITIC Group, a Chinese state owned conglomerate — signed the EPC contract with a work period of 28 months on December 21, 2015 Implementation began on April 24, 2017. ICBC also provided a $2.5 billion loan for Phase 1 of the Kilamba Kiaxi Housing Construction Project (as captured via Record ID#47101).

Staff comments

1. This project is also known as the First Stage of Phase 2 of the Kilamba Kiaxi Housing Construction Project. The Chinese project title is 建设K.K.项目第二期. 2. No sources explicitly state that this loan is a buyer's credit loan. AidData assumes this is the case for the following reasons: (1) The loan is provided to a foreign borrower, (2) the loan is denominated in USD, (3) the face value of the loan is explicitly identified in multiple official sources, (4) the loan is used to finance a commercial contract with a Chinese company (CITIC), and (5) the loan was insured by Sinosure via its export buyer's credit insurance service, which is specifically used when banks are providing buyer's credit financing.