Angola’s government has approved an additional loan of 247.8 million euros loan from UK bank Standard Chartered to finance the construction of the power transmission system associated to the Lauca Hydroelectric Plant, according to a presidential order dated 20 February.
The Lauca hydroelectric project on the Kwanza river and located between the provinces of Kwanza Norte and Malanje is the second largest dam in Africa and the largest public works project in the country, costing an estimated US$4.3 billion.
The Angolan government announced in October 2016 that it was looking for alternative financing solutions following the suspension of funds from a Brazilian credit line for works in Angola – including the Laúca dam – following a corruption scandal in Brazil.
By 6 February, a US$ 5 million loan had been approved by the Development Bank of Southern Africa (DBSA) to cover the investment gap in that project.
These two contracts are added to two others for the same purpose. The first also involving Standard Chartered, with a loan of 220.5 million euros and one of 150 million dollars with Gemcorp.
The dam was inaugurated on 4 August by the then Angolan President, José Eduardo dos Santos, who put the first generator set into operation, sending the first 334 megawatts of electricity to the national grid. (macauhub)