Angola uses US$1 billion of its Chinese reconstruction credit line

18 January 2006

Lisbon, Portugal, 17 Jan – Angola has already used US$1 billion from the credit line granted by China for reconstruction projects, half of the total funds available, and may use up the remainder by the end of 2006, according to Portuguese bank BPI.

In its latest report on Angola, BPI estimates that the largest amount of money ahs been spent on rebuilding roads (240 million euros) and building Luanda airport, with significant amounts spent on trucks and agricultural implements (100 million euros) and building schools, hospitals and markets.

The agreement between China and Angola makes it possible to increase the credit line to 4 billion euros, and extending its period for a further two years.

“By the end of 2005 around US$1 billion had been used for several projects, despite the process having been slower than expected due to bureaucratic difficulties related to the novelty of granting this new type of aid,” said the report published in Lisbon.

As well as the already mentioned projects, the Chinese fund will support the rebuilding of the Benguela railroad, due to begin early 2006 as well as having been used for rebuilding the railroad linking Namibe to Menongue, in Kuando Kubango province.

Angola has a further two credit lines, with a value of US$500 million each provided by Russia and Brazil, which amongst other projects are financing the Capanda dam project in the north of Angola.

Construction of the Lobito refinery (Sonaref) is being financed with funds from foreign oil companies and road building is being principally carried out through use of funds from Portugal and Germany.

In total, the Angolan government’s infrastructure project for 2005 and 2006 requires funding of US$1.9 billion. (macauhub)