The Multilateral Investment Guarantee Agency (MIGA) will guarantee up to the limit of US$512 million loans contracted by Angola to expand the Cambambe hydroelectric complex, indicates a statement released by the World Bank.

MIGA is a World Bank institution responsible for insuring against political risk. It will guarantee up to that amount compensation for loans granted in case of non-payment up to the due date for Angola’s sovereign financial obligations for 13 years.

The statement reports that the Hong Kong and Shanghai Banking Corporation, Société Générale and BHF-Aktiengesellschaft have granted the Angolan government a US$300 million loan to build the second power plant at Cambambe, one of two operational hydroelectric complexes on the Cuanza River.

The planned expansion involves the installation of four generator turbines and an additional total capacity of 700 megawatts, based on a contract for engineering, acquisitions and constructions awarded to Brazil’s Odebrecht.

The project is part of a larger programme to repair and expand hydroelectric projects, with the aim of increasing electric power production in Angola from about 1,500 megawatts to more than 5,000 megawatts.

The Cambambe dam in Cuanza Norte province opened in 1962; its current capacity is 180 megawatts. The process of repairing, modernising and expanding the hydroelectric complex began in 2009.

When fully operational the two plants will be able to supply electric power to 8 million people. (macauhub)