Overview

CDB provides loan for Tchicala-Tcholoanga 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 Tchicala-Tcholoanga within Huambo Province. More detailed locational information can be found at https://www.openstreetmap.org/node/1092274594.

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

Eqadint Internacional Group Co., Limited

Collateral providers

State-owned companies

Sonangol E.P.

Loan desecription

CDB provides loan for Tchicala-Tcholoanga 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 Tchicala-Tcholoanga Water Supply System Construction Project. The proceeds of this loan were used to finance a $11,456,396.96 commercial contract with Eqadint Internacional Group Co., Limited. The project involved the construction of a new water supply system in the town of Tchicala-Tcholoanga within Huambo Province. The 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 do Novo Sistema de Abastecimento de Água da Tchicala-Tcholoanga, na Província do Huambo. The $15 billion facility agreement (captured in Record ID#66847) is fully disbursed.