Overview

CDB provides loan for 15 km Cuito Road Rehabilitation Project (Linked to Record ID#66847 and #65751)

Commitment Year•2016Country of Activity•AngolaDirect Recipient Country of Incorporation•AngolaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2016

Start (actual): Sep 1, 2016

Last repayment: Dec 29, 2027

Geospatial footprint

Map overview

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The project involved the rehabilitation of 15 km of secondary and tertiary roads in the city of Cuito (15 km) within the province of Bié. More detailed locational information can be found at https://www.openstreetmap.org/node/279010365

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

Guangxi Hydroelectric Construction Bureau (GHCB)

Collateral providers

State-owned companies

Sonangol E.P.

Loan desecription

CDB provides loan for 15 km Cuito Road Rehabilitation 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 15 km Cuito Road Rehabilitation Project. The proceeds of this loan were used to finance a $21,000,000 commercial contract with Guangxi Hydroelectric Construction. The project involved the rehabilitation of 15 km of secondary and tertiary roads in the city of Cuito (15 km) within the province of Bié. The project reportedly entered implementation in September 2016, but its precise implementation start and end dates are unknown. See Record ID#65751 for other construction projects financed through the 2015 CDB facility.

Staff comments

This project is also known as the 15 km Kuito Road Rehabilitation Project. The Portuguese project title is Reabilitação de Vias Secundárias e Terciárias da Cidade do Cuito (15 Kms) na Província do Bié. The $15 billion facility agreement (captured in Record ID#66847) is fully disbursed.