Overview

CDB provides loan for Caconda-Chicomba-Quipungo Section (Lot 1) and Rio Ngalo-Caconda Section of EN110/EN280 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: Dec 29, 2027

Geospatial footprint

Map overview

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This project is a section of the EN110 (Lot 1) between Caconda and Quipungo via Chicomba and a section of the EN110 between Rio Ngalo (Matala) and Caconda. More detailed locational information can be found at https://www.openstreetmap.org/relation/1802545 and https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-13.73885%2C15.06197%3B-14.82532%2C14.54594#map=9/-14.2842/14.8112 and https://www.openstreetmap.org/directions?engine=fossgis_osrm_car&route=-13.7388%2C15.0620%3B-14.7383%2C15.0289#map=12/-14.3676/15.0810

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 Railway 20 Bureau Group Co., Ltd.

Collateral providers

State-owned companies

Sonangol E.P.

Loan desecription

CDB provides loan for Caconda-Chicomba-Quipungo Section (Lot 1) and Rio Ngalo-Caconda Section of EN110/EN280 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 Caconda-Chicomba-Quipungo Section (Lot 1) and Rio Ngalo-Caconda Section of EN110/EN280 Road Rehabilitation Project. The proceeds of this loan were used to finance a $58,811,692.37 commercial contract with China Railway 20 Bureau Group Corporation (CR20). The project involved the rehabilitation of two road segments within Huíla Province: a section of the EN110 (Lot 1) between Caconda and Quipungo via Chicomba and a section of the EN110 between Rio Ngalo (Matala) and Caconda. The project 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#73573 and Record ID#73628 for other sections of the EN110 Road Rehabilitation Project.

Staff comments

The Portuguese project title is Reabilitação da EN 110/EN 280 - Troço: Caconda/Chicomba/Desvio de Quipungo, Lote 01 - Caconda/Rio Ngalo, na Província da Huíla. The $15 billion facility agreement (captured in Record ID#66847) is fully disbursed. This loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020.