Angola/China: Angolan projects attract over US$ 1.6 billion in the second phase of funding by Eximbank

12 January 2009

Luanda, Angola, 12 Jan – China’s Eximbank has already approved over US$1.6 billion in funding for Angolan government projects, under the second phase of the credit line for Luanda, according to official data.

The data recently released by the Angolan Ministry of Finance indicate that of the 57 projects involved, four are in the energy and water sector, four in telecommunications and postal sectors, three in fishing, another three in education, two in agriculture and one in health.

The Ministry for Public Works has the most projects in progress under this second phase – either with funding already released or still waiting for the “green light.”

There are US$907.73 million, of which US$477.45 million are for the reconstruction of the Caxito-Nzeto road.

The reconstruction of the Nzeto-Tomboco-M’banza Congo (US$160 million), and the first phase of projects for integrated infrastructures in the provinces of Zaire (US$113.15 million), Malange (US$84.1 million) and Cabinda (US$73 million) are expected to take place.

These three integrated projects, according to the same source, have an expected total investment of US$400 million (Zaire), US$253.7 million (Cabinda) and US$237.1 million (Malange).

The second, more expensive package of projects is for the Transport Ministry – US$558.97 million – already funded or awaiting funding.

Of this total, US$ 440 million are destined for the purchase of urban public transport for Luanda, Benguela, Huambo, Uige and Malange – a total of 5,500 buses.

Luanda has already made it known to Beijing that it is interested in having some or all of these vehicles assembled in Angola.

Also in the pipeline for the transport projects is the purchase of rail transport equipment (US$61.97 million) and 1,500 vehicles (US$57 million).

The Angolan Ministry of Finance has signed three credit agreements with Eximbank, to the value of US$2 billion (March 2004), US$500 million (July 2007) and over US$2 billion (September 2007) which have enabled the support of reconstruction projects.

Angolan President, Jose Eduardo dos Santos’s second visit to China in five months in December last year served to ensure the continuation of Chinese support for the country’s reconstruction projects, at a time when the fall in the price of diamonds and particularly of petroleum have caused Luanda to lose important income.

According to information published by the Angolan Ministry of Finance, the value of funding under this second package of finance reaches US$ 1,607 billion, which is 90 percent of the amount for projects in the pipeline put forward by Luanda, in the region of US$1.786 billion. (macauhub)