China Eximbank provides $509.4 million buyer’s credit loan for Package 5 of N’Zeto-Soyo Highway Project (Linked to Record ID#34750, #73903)

China Eximbank provides $509.4 million buyer’s credit loan for Package 5 of N’Zeto-Soyo Highway Project In 2011, the Government of Angola reportedly drew down on one or more of its lines of credit (master loan facility agreements) with China Eximbank to obtain two subsidiary buyer’s credit loans for the 149 km N’Zeto-Soyo Highway Construction Project: a $46 million buyer’s credit loan for Package 7 of the N’Zeto-Soyo Highway Construction Project and an $85 million buyer’s credit loan for Package 5 of the N’Zeto-Soyo Highway Construction Project.

The N'zeto-Soyo highway has a design speed of 100 km per hour and it is the northernmost section of the N100 highway in Angola's national highway network.

It is an important arterial road connecting Soyo, the oil and port city, with Nzeto, the traditional economy powerhouse via the remote northern villages.

Upon completion, the 96-kilometer highway was expected to connect 36 villages along the route, reducing the travel time between Nzeto and Soyo from 8 hours to 2 hours, and allowing Angola’s oil to be transported to other parts of the world.

The highway is an arterial road for oil transportation that connects the north and south of Angola along the west coast of the Atlantic Ocean.

Package 5 involved the construction of a 96.9 km two-way, four-lane, highway segment (Km 8 + 800 to Km 104 + 800) in Zaire Province.

Package 7 involved the construction of bridges over the Lucunga, Quimiana, Moanda, Sango, Luculo, Bua, Quimbuenbo and Kifuma rivers. These bridges collectively measure 2.4 km in length. PowerChina International Group Limited was the general contractor responsible for implementation. Sinohydro Engineering Bureau 4 Co,.

Ltd was the principal subcontractor responsible for implementation.

It was reported to have signed approximately a $600 million construction contract with the Government of Angola on December 1, 2008.

However, it appears as though Presidential Order n°32/14 from April 2, 2014 approved the commercial contract between National Institute of Estradas de Angola (INEA) and the company Sinohydro, in the equivalent amount in Kwanzas in the amount of $514,578,031.66. A 2016 report from República de Angola Tribunal de Contas records the contract amount as $605,385,919.60.

Construction began on September 1, 2008 and the project was originally expected to reach completion within 36 months; however, due to ‘financial difficulties’ (which appear to be in line with the increased construction contract costs), construction was halted for a number of years until the Government of Angola and China Eximbank loan signed a third (Sinosure-backed) buyer’s credit loan agreement worth $509,433,034.27 on September 25, 2015 for Package 5 of the N’Zeto-Soyo Highway Construction Project.

Construction restarted in May 2016, and the road was opened to traffic on August 17, 2017. The project was officially completed on February 28, 2019.

Record ID#34750 captures the $85 million loan from China Eximbank, while Record ID#73903 captures the $46 million loan from China Eximbank and Record ID#65330 captures the $509,433,034.27 loan from China Eximbank.

According to Angola’s Ministry of Finance, the total amount outstanding (including principal and capitalized interest) under the $509,433,034.27 China Eximbank loan was $334 million as of December 31, 2018 and $332 million as of December 31, 2021.