ICBC provide $106.4 million loan for Sumbe City, Cuanza Sul, Integrated Infrastructure Lot 2 - Drainage Project

Project narrative

On January 21, 2019, ICBC and the Government of Angola signed a $106,427,774 loan agreement for the Sumbe City, Cuanza Sul, Integrated Infrastructure Lot 2 - Drainage Project. The proceeds of the loan were to be used by the borrower to finance approximately 85% of the cost a $125,209,146 commercial contract between Angola’s Ministry of Construction and China Harbour Engineering Company Ltd (CHEC), which was signed in March 2017. Lot 2 involved the construction of drainage works, the rehabilitation of 13 km of streets, and the renovation of public lighting and telecommunications networks in Sumbe City. The project ultimately sought to address the city’s deficits related to mobility, access to clean water, and basic sanitation. The city of 200,000 inhabitants had become known for its problem with dust and the health consequences that resulted from this problem. Construction commenced on February 20, 2019, approximately three months after Lot 1 began implementation. As of November 2019, the project had achieved a 24% completion rate and it was estimated that construction would be completed by August 2020. Angola’s Minister of Public Works and Spatial Planning, Manuel Tavares de Alameida, visited the Lot 2 construction site in December 2020 and told reporters that 37% of the work on lot 2 had been carried out and that he expected completion of Lot 2 in 2022. At the time of the Minister’s visit, Lot 3 was still awaiting funding. The Minister explained that the Chinese line of credit that was supposed to finance Lot 3 had not been activated‚ and that the Angolan Government was seeking an alternative financier.