Chinese bank syndicate provides $4.1 billion buyer's credit loan for 2171 MW Caculo Cabaça Dam and Transmission Line Project (Linked to Record ID#67108, #67109, #67110, #67111)

China Eximbank, ICBC, Bank of China, and China Construction Bank contributions to USD 4.1 billion buyer's credit syndicated loan for 2171 MW Caculo Cabaça Dam and Transmission Line Project in Angola On 5 December 2016, the Government of Angola entered into a $4.1 billion syndicated loan facility agreement with the Industrial and Commercial Bank of China (ICBC), China Eximbank, China Construction Bank, Bank of China, China Minsheng Bank, and Ping An Bank for the 2171 MW Caculo Cabaça Dam and Transmission Line Project.

This project records the overall $4.1 billion buyer's credit loan (BCL).

Each bank's individual contribution is as follows: 1) ICBC loaned $1.239 billion (Record ID#67108) 2) China Eximbank loaned $1.239 billion (Record ID#67109) 3) Bank of China loaned $619.8 million (Record ID#67110) 4) China Construction Bank loaned $619.8 million (Record ID#67111) 5) China Minsheng Bank loaned $371.88 million (private) 6) Ping An Bank loaned $371.88 million (private) The loan facility has a term (maturity) of up to 15-years and an interest rate of 4.906% (LIBOR + 3.6%).

The Government of Angola did not issue a sovereign guarantee for the loan, but it is insured by China Export & Credit Insurance Corporation (Sinosure).

The proceeds of this loan were used to finance up to 85% of the EPC contract price ($4,532,114,041.00) for the 2171 MW Caculo Cabaça Dam and Transmission Line Project. The availability period applicable to the loan facility ends in December 2022. The total project cost is estimated to be at least $4.532 billion.

This bank syndicate committed to providing $4.1 billion so the remaining costs were covered through an equity contribution from the Government of Angola.

CGGC-Niara — a joint venture of China Gezhouba Group Corporation (60% stake), Boreal Investments Limited (37.5% stake), and NIARA Holding (2.5% stake) — signed the EPC contract for the project on 11 June 2015.

However, on 5 November 2019, the President of Angola formally authorized Presidential Order No. 79/18 (from 12 July 2019) which amended the EPC contract by removing CGGC-Niara and Boreal Investments Limited so that "the only party to the contract is China Gezhouba Group Company Limited (CGGC)".

This project comprises the temporary river diversion works, main construction works, and supplying electromechanical equipment. An inauguration ceremony marking the beginning of construction was held on 4 August 2017. Works were supposed to last 80 months (6-years and 8 months) so completion is scheduled in April 2024.

As of June 2020, 90% of tunneling work necessary to divert the Cuanza River to the dam had been completed and 3.47% of work on the dam itself had been completed. The turbines at the Caculo Cabaça Dam is expected to start to produce electricity in 2024.