Government of Angola seeks alternatives to suspended Brazilian funds

18 October 2016

The Angolan government is looking for alternative financing solutions following the suspension of a credit line from Brazil for public works in Angola, said Monday in Luanda the minister of Energy and Water, João Baptista Borges.

The National Bank for Economic and Social Development of Brazil (BNDES) announced recently it had decided to suspend payment of US$4.7 billion for 25 projects in foreign countries, including Angola and Mozambique.

The suspension of payment relates to contracts that have been awarded to engineering and construction companies, including Odebrecht, OAS, Queiroz Galvão, Camargo Corrêa and Andrade Gutierrez, which are involved in the corruption scandal in Brazil known as “Operation Jet Wash.”

Recognizing the existence of constraints for some time, the minister said the government has been trying to find alternative solutions and said he was optimistic about meeting the deadlines that have been set for completion of works.

The works include the Agro-Industrial Complex of Capanda, the Lauca hydroelectric facility, the heightening and the second plant at the Cambambe dam in Angola, carried out by Brazilian construction company Odebrecht, costing a total of US$808.8 million yet to be disbursed .

Baptista Borges said that the Finance Ministry has been negotiating with other potential lenders to find resources to cover those that were expected to come from the Brazilian credit line and to date have not been confirmed. (macauhub)