Completed Development AidData Chinese Aid

CDB provides $117 million loan for Pedras Negras Farm Project (Linked to Record ID#67)

Funder	China Development Bank (CDB)
Recipient Organization	Government of Angola
Country	Angola
Start Date	May 08, 2011
End Date	Oct 28, 2026
Duration	5,652 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`64146`

Grant Description

CDB provides $117 million loan for Pedras Negras Farm Project In 2009, China Development Bank (CDB) and CITIC Construction officials visited Malanje Province in Angola to obtain information about the province’s potential, including its water resources, arable land, soil fertility and most important crops.

Then, on October 29, 2010, CITIC Construction and Angola’s Ministry of Agriculture signed a $120 million commercial contract for the Pedras Negras Farm Project.

Then, in 2011, China Development Bank approved a $117 million subsidiary loan for this project through a larger $1.5 billion line common terms agreement that it signed with the Government of Angola (as captured via Record ID#67).

The proceeds of the loan were to be used by the borrower to finance the commercial contract that was signed on October 29, 2010.

The first three years of the project (and CITIC contract period) were used to clear land, build farm infrastructure, and conduct plant experimentation; the final two years of the project (and CITIC contract period) were used to train Angolan farmers in technology and land management.

The Pedras Negras farm in Malanje Province covers an area of about 10,000 hectares and harvests over 10,000 tons of maize, beans, and soybeans per harvest season. It is reportedly is one of the most advanced and modern farms in Angola. CITIC Construction was the contractor responsible for implementation.

However, Gesterra, a land management company owned by the Angolan Ministry of Agriculture, Rural Development, and Fisheries, was also involved in the management of the project. Site reclamation began in August 2010, but the project did not officially commence until October 14, 2011.

An inauguration ceremony for the project was held on August 30, 2012, but the project was not officially handed over to the Angolan authorities until November 2016.

📋 Staff Comments

This project is also known as the Malanje Black Stone Farm Project and the Malanje Agricultural Project. The Portuguese project title is Fazenda Pedras Negras. The Chinese project title is 署马兰热农业项目 or 马兰热黑石农场.
According to the World Bank Group's International Finance Corporation, the Fundo Soberano de Angola was the 'responsible entity' for the financing provided by CDB. However, it is unclear if this means that Fundo Soberano de Angola was the borrower. This issue warrants further investigation.
In order to eliminate the risk of double-counting financial commitments, AidData does not record a transaction value (commitment amount) for the $117 million CDB loan that supported the Pedras Negras Farm Project. This borrowing (drawdown) under the $1.5 billion common terms agreement is almost certainly already captured via Record ID#67.

📚 Sources & References

Chinese-run farms showcase modern agriculture in Angola
Chinese group CITIC modernises agriculture in Angola
CITIC -- Annual Report 2016
China’s Involvement in Angola: Mutually beneficial commercial pragmatism?
Angola: Chinese businesspeople plan to invest in Malanje
Growing Together with Our Employees
CITIC Construction sowing seeds of success in Angola
Angolan Minister of Agriculture
Rural Development and Finsheries and Governor of Malanje Province Inspect CITIC Construction Black Stone Farm
Will Africa Feed China?
中信建设安哥拉农业开发项目获当地政府好评
马兰热省省长考察中信建设马兰热黑石农场
中信建设向安哥拉移交现代化农场
安哥拉卡班达农产品加工投资会在黑石农场成功举办吸引150多家企业参加
Chinese Loans to Africa Database
Angolan Agricultural Development Project
Chinese-run farms showcase modern agriculture in Angola
China’s Citic introduces modern farming to Angola
安哥拉农业开发项目
Construção Chinesa do Cidade de Kilamba Kiaxi e a Acção Social da CITIC em Angola
CREATING MARKETS IN ANGOLA Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.