Overview

CDB provides loan for Cabo Ledo-Lobito Section (Lot 5) and Ponte do Rio Eval-Ponte do Rio Culango Section of EN100 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

Last repayment (originally scheduled): Dec 29, 2027

Geospatial footprint

Map overview

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The project involved the rehabilitation of two road segments along the EN100 in Benguela Province: a segment between Cabo Ledo and Lobito (Lot 5) and a segment between Ponte do Rio Eval and Ponte do Rio Culango. More detailed locational information can be found at https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-9.6557%2C13.2389%3B-8.8131%2C13.2551#map=10/-9.2350/13.1493, https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-11.8107%2C13.9454%3B-12.3001%2C13.8316#map=10/-12.0554/13.9114

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 National Machinery Industry Corporation (Sinomach)

Collateral providers

State-owned companies

Sonangol E.P.

Loan desecription

CDB provides loan for Cabo Ledo-Lobito Section (Lot 5) and Ponte do Rio Eval-Ponte do Rio Culango Section of EN100 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 Cabo Ledo-Lobito Section (Lot 5) and Ponte do Rio Eval-Ponte do Rio Culango Section of EN100 Road Rehabilitation Project. The proceeds of this loan were used to finance a $36,776,770.96 commercial contract with China National Machinery Industry Corporation Group (SINOMACH). The project involved the rehabilitation of two road segments along the EN100 in Benguela Province: a segment between Cabo Ledo and Lobito (Lot 5) and a segment between Ponte do Rio Eval and Ponte do Rio Culango. The project reportedly entered implementation, but its precise implementation start and end dates are unknown. See Record ID#65751 for other construction projects financed through the 2015 CDB facility. See Record ID#73630 and Record ID#73638 for other sections of the EN100 Road Rehabilitation Project.

Staff comments

The Portuguese project title is Reabilitação da EN 100 - Troço: Cabo Ledo/Lobito - Lote 05 - Ponte do Rio Eval/ Ponte do Rio Culango, na Província de Benguela. The $15 billion facility agreement (captured in Record ID#66847) is fully disbursed.