Angola to have fund to guarantee risks associated to public-private partnership projects

2 June 2011

Luanda, Angola, 2 June – A fund to guarantee risks, worth an estimated US$200 million to US$300 million, is being set up by the Angolan government, related to Public-Private Partnership (PPP) projects, the director of the technical office to support PPPs at the Economy Ministry, Mário Pires said Tuesday in Luanda.

According to Pires, the fund will have the funding necessary to guarantee risk, to help the State or a public company that has a partnership with the private sector and, which at a particular time, is not able to pay.

He said that the fund, which will be set up in 2012, would have its regulations approved between July and August of this year and a managing bank that had yet to be decided upon.

Pires said at the Forum on PPPs promoted by the Association of Brazilian Businesspeople and Executives in Angola (Aebran) that the fund would provide some comfort as well as pressure to have more efficient budgetary organisation.

Pires also said that the Angolan government planned to establish its first PPPs in the infrastructure sector in 2012 and added that the Economy Ministry had some pilot schemes underway costing a total of US$1 billion. (macauhub)