Overview

CDB provides loan for Camucuio Water Supply System Construction Project (Linked to Record ID#66847 and #65748)

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

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2016

Last repayment (originally scheduled): Dec 29, 2027

Geospatial footprint

Map overview

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The project involved the construction of a new water supply system in the town of Camucuio within Namibe Province. More detailed locational information can be found at https://www.openstreetmap.org/node/5469362547.

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

Government Agencies

Government of Angola

State-owned companies

China Machinery Engineering Corporation (CMEC)

Collateral providers

State-owned companies

Sonangol E.P.

Loan desecription

CDB provides loan for Camucuio Water Supply System Construction Project

Interest 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 facility agreement with the Government of Angola (see Record ID#66847). The facility is an oil prepayment facility with repayments being serviced through receivables from a designated oil contract. The facility agreement has a maturity of 12 years and its availability period expired on December 9, 2017. One of the subsidiary loans approved through this facility was a loan in 2016 for the Camucuio Water Supply System Construction Project. The proceeds of this loan were used to finance a $9,743,556.42 commercial contract with China Machinery Engineering Corporation (CMEC). The project involved the construction of a new water supply system in the town of Camucuio within Namibe Province. This project entered implementation, but its precise implementation start and end dates are unknown. See Record ID#65748 for other water and energy projects financed through the 2015 CDB facility.

Staff comments

The Portuguese project title is Construção de Novo Sistema de Abastecimento de Água de Camucuio, na Província do Namibe. The $15 billion facility agreement (captured in Record ID#66847) is fully disbursed. SAIS-CARI identifies the face value of the loan that supported the Camucuio Water Supply System Construction Project as $10 million, but this value exceeds the value of the commercial contract.