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ICBC contributes to $1.2891 billion syndicated buyer's credit loan for New Angola International Airport (NAIA) Construction Project (link to AidData Record IDs #105317, #65524, #72349)
| Funder | Industrial and Commercial Bank of China (ICBC) |
|---|---|
| Recipient Organization | Government of Angola |
| Country | Angola |
| Start Date | May 09, 2018 |
| End Date | Oct 28, 2030 |
| Duration | 4,555 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 65402 |
Grant Description
ICBC and China CITIC Bank contribution to $1.2891 billion syndicated credit loan for New Angola International Airport (NAIA) Construction Project On May 9, 2018, the Industrial and Commercial Bank of China (ICBC), China CITIC Bank Corporation Limited, and the Government of Angola signed a $1.2891 billion syndicated buyer’s credit loan (BCL) agreement for the New Angola International Airport (NAIA) Construction Project.
Record ID#65402 captures ICBC’s estimated contribution and Record ID#105317 captures China CITIC Bank Corporation Limited's estimated contribution.
It is backed by a Sinosure credit insurance policy.
The borrower was expected to use the loan proceeds to finance 85% of the cost of a $1.51 billion commercial contract between Angola’s Ministry of Transportation (MINTRANS) and China National Aero-Technology International Engineering Corporation (AVIC-ENG). As of December 2024, the loan remained undrawn.
The purpose of the project was to construct and equip the New Angola International Airport (NAIA), which is located approximately 40 km to the southeast of the centre of Luanda, in the Bom Jesus commune, Icole e Bengo municipality in Luanda Province.
The airport was designed to be an alternative to the existing Quatro de Fevereiro Airport, another international airport that serves Luanda.
The new airport was designed to have an annual capacity of 15 million passengers and 600,000 tons of cargo, with a 4,200 meter runway and 3,800 meter runway, and a 160,000 square meter terminal. The airport was also expected to have 12 aircraft docks, a VIP passenger terminal, and an air traffic control tower.
China National Aero-Technology International Engineering Corporation (AVIC-ENG) was the EPC contractor responsible for implementation.
Construction on this project began in 2007 under the management of the China International Fund (CIF); however, in February 2019, the Angolan Government announced that it had cancelled the contract with CIF. CIF was replaced by AVIC-Eng.
Other contractors and suppliers involved in the project are Metallurgical Corporation of China (CTMCC), Dalian Zongyi Science & Technology Development, Fangda New Materials (Jiangxi), and Beijing Urban Construction Exploration & Surveying Design Research Institute.
Angola's Ministry of Transportation (MoT) also appointed Mace Engineering Group as project manager and site supervisor for the project on March 27, 2015. As of August 2019, the project had achieved a 60% completion rate, with plans to commission the airport in 2022. However, due to financial problems, work on the project was halted in 2019.
Then, at the second Ordinary Session of the Cabinet Council, held on February 28, 2019, Angola’s Ministry of Transport was directed to conduct technical and financial review of the project in order to guarantee its completion, ensure better alignment with various ministerial departments, and establish a new schedule of actions.
Then, in May, 2020, an addendum to the commercial contract between AVIC-Eng and MINTRANS was signed.
At the same time, the parties signed a Memorandum of Understanding (MOU) as part of the technical review work to adapt the quality and operational parameters of the new airport. Work resumed on May 17, 2021.
Then, on June 17, 2022, the airport organized its first test flight as part of a certification process and it was officially renamed Agostinho Neto International Airport. The project was rescheduled for completion on December 31, 2023.
Angolan President Joao Lourenco attended an opening ceremony on November 10, 2023, launching the airport's cargo operations.
Staff Comments
- This project is also known as the New Luanda International Airport (NAIL) Project or New Luanda, Angola International Airport, or NAIA or Bom Jesus International Airport. The Portuguese project title is Aeroporto Internacional de Angola. The Chinese project title is 安哥拉罗安达新国际机场项目.
- No sources explicitly state that this is a buyer's credit loan. AidData assumes this is the case for the following reasons: (1) The loan is provided to a foreign borrower, (2) the loan is denominated in USD, (3) the face value of the loan is explicitly identified in multiple official sources, (4) the loan is used to finance a commercial contract with a Chinese company, and (5) the loan was insured by Sinosure via its export buyer's credit insurance service, which is specifically used when banks are providing buyer's credit financing.
- This ICBC loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020.
- According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Angola as 6.0089% in 2018. AidData estimates the interest rate of the ICBC loan that supported the New Angola International Airport (NAIA) Construction Project by using this figure. See https://www.dropbox.com/scl/fi/qi2hvg1s05nsak3n1n83u/Private-Chinese-Loans-to-Angola-November-2023-Data-Extraction.xlsx?rlkey=0aq7jdxm29ynbw4yh1bn07c7m&dl=0.
- In 2017, China Development Bank reportedly also issued a loan for the New Luanda International Airport Construction Project (see Project ID#72349) but it was apparently replaced by the ICBC loan that is captured via Project ID#65402. In 2018, Bank of China (BOC) provided a $148,721,360 buyer's credit loan (BCL) for the Luanda New International Airport Railway Branch Line Project (see Project ID#65524).
- Because the individual contributions of the banks are unknown, AidData assumes equal contributions ($644,550,000) across the two members of the loan syndicate. AidData Record ID #665402 records ICBC’s contribution, and Record ID #105317 records the contribution from China CITIC Bank Corporation Limited.
Sources & References
- Angola negotiates new financing and loans
- Angola's new airport still at least two years away
- New Luanda International Airport
- New airport delayed again
- Angolan Head of State checks works on new airport of Luanda
- New international airport undergoes correction works
- New airport in Luanda
- Angola, to undergo changes
- NEW ANGOLA INTERNATIONAL AIRPORT UNDER CONSTRUCTION
- INSIDE AFRICA: Now is the time to invest in Africa
- Angola negotiates new financing and loans
- Angola bets on FOCAC 2018
- China/África: Luanda e Pequim adiam negociações de cooperação para final de setembro - MIREX
- Angola - Transportation (Aviation and Rail)
- Luanda’s new airport in Angola aims to rival Johannesburg airport
- Angola: New International Luanda Airport concluded in 2010
- THE REPUBLIC OF ANGOLA U.S.$500,000,000 9.375 per cent. Notes due 2048
- CREATING MARKETS IN ANGOLA
- 中国在非洲大盖机场 安哥拉项目恐成烂尾工程, 2019年3月罗安达新国际机场工程新闻
- 安哥拉要求中国将其还债期延长两年 已借200亿美元
- DRS Official Commitments from China through 2020
- 安哥拉政府与中国工商银行洽谈177亿美元新信贷安排
- LUANDA NEW INTERNATIONAL AIRPORT PROJECT FLIGHT AREA ENGINEERING PART OFFICIALLY RESUMED WORK
- Angola
- 安哥拉罗安达新国际机场项目飞行区工程正式复工
- 安哥拉罗安达新国际机场项目
- New Luanda International Airport
- Angola's new airport construction contract signed
- MINTRANS announces resumption of work on the new Luanda International Airport, which should be operational in 2023
- Private Chinese Loans to Angola November 2023 Data Extraction
- Angolan airport set to become symbol of BRI, https://novojornal.co.ao/economia/interior/novo-acordo-de-financiamento-desta-vez-de-700-milhoes-usd-com-o-credit-suisse-54276.html
- PR reúne empresa construtora do novo aeroporto
- 中企承建安哥拉罗安达新国际机场命名仪式举行
- 安哥拉总统视察中企承建的罗安达新国际机场项目
- 工商银行：以高质量金融服务为共建“一带一路”架设金融桥梁
- 特别呈现｜“一带一路”十周年大行样本：工商银行打造跨境金融合作新蓝图
- Críticas e escândalos ensombram novo Aeroporto Internacional de Luanda, 0181R_1-2024-12-20.pdf 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.
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Government of Angola
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