The government of Angola has approved the payment of the first installment of the contract for construction of the Soyo combined cycle power plant, in Zaire province, in the amount of US$147.7 million, according to a presidential decree.
The contractor is China Machinery Engineering Corporation (CMEC), which agreed with the Ministry of Energy and Water to build the combined-cycle plant for 102.5 billion kwanza (US$976 million).
The contract was approved last August, and at the time the government justified the expense based on “growth forecasts of demand for electricity in the country” in the medium and long term.
In addition to approving the Soyo power plant project, in northern Angola, the decree also approves the draft of the construction contract and installation of this facility, based on a “turn-key” agreement with the CMEC group.
The commissioning of the first phase of the plant, under construction in the Kintambi and Mongo-Soyo, on the outskirts of the town, scheduled for 2016, is designed to generate 230 megawatts of power, of 750 megawatts planned for 2018.
The project, whose financial advisors are Millennium BCP and Banco Privado Atlântico (BPA), is the result of a partnership between Energias de Portugal (EdP) and Sonangol, signed in July 2009 by founding holding company EIH, which is owned 30 percent each by EDP, Sonangol and Banco Privado Atlântico and the remaining 10 percent by Finicapital.
The contract between the two banks, Millennium, majority Portuguese capital, and BPA, majority Angolan capital, covers advisory and financing of the plant and transmission network between Soyo and Luanda and also includes a rural electrification programme using renewable energy. (macauhub/AO/PT)