The first payments from the sixth credit line from Brazil for Brazilian companies operating in Angola, worth a total US$2 billion, will be made this year, mainly in the electricity production sector, Angola’s Finance Minister said in Brasilia.
“The sixth credit facility has come into effect. This will be followed by a process to identify specific projects and the facility will make payments not only during the 2014 financial year but also for the following years,” said Finance Minister Armando Manuel in a statement aired Wednesday on Angolan public radio.
“Only Brazilian companies are eligible to use these resources,” noted the minister adding that the new credit lien increased Brazilian funding for goods and services exports to Angola to US$7.83 billion.
According to information from the Angolan government much of this funding will be used in the energy sector, particularly to increase power production.
Angola’s Energy Minister, João Baptista Borges, who was also in Brasilia said that “two large projects” had already been registered for this Brazilian credit line.
One of these is construction of a second hydroelectric facility on the Cambambe Dam, in Kwanza Norte province. The dam was originally inaugurated on 6 October 1963, during the colonial period and the projected work will increase production capacity from 180 to 960 megawatts. The other project is the Laúca hydroelectric facility on the Kwanza River.
The credit lien follows a State visit by the President of Angola, José Eduardo dos Santos, to Brazil. (macauhub/AO/BR)