Completed Mixed AidData Chinese Aid

CDB provides $76 million loan for Cabinda Lot 1 water supply system (Linked to Record ID#66847, #65748, and #65750)

Funder	China Development Bank (CDB)
Recipient Organization	Government of Angola
Country	Angola
Start Date	Dec 09, 2015
End Date	Feb 11, 2033
Duration	6,274 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`65749`

Grant Description

CDB provides $76 million loan for Cabinda Lot 1 water supply system On December 9, 2015, China Development Bank (CDB) entered into a $15 billion loan agreement (captured via Record ID#66847) with the Government of Angola.

The loan is an oil prepayment facility with repayments being serviced through receivables from a designated oil contract.

The pricing structure of the loan allows the Government of Angola to benefit from an upside in an increase in the price of oil. The loan has a maturity of 12-years and its availability period expired on December 9, 2017.

As a condition of the loan agreement, the lender required the borrower to maintain a minimum cash balance of approximately $1.5 billion in an escrow account known as the Debt Service Reserve Account (DSRA).

The proceeds of the loan were used to be used to recapitalize Sonangol, help Sonangol prepay some of its outstanding debts to CDB, and finance a series of public investment projects. As of December 31, 2017, the loan had achieved a 100% disbursement rate. Repayments commenced in 2018.

The loan’s amount outstanding was $14.9 billion in December 2018, $14.5 billion as of June 30, 2019, and $11.3 billion as of December 31, 2021.

One of the subsidiary loans approved through the oil prepayment facility was a $76 million loan in 2016 for the Cabinda Water Supply System (Lot 1) Project.

The proceeds of this loan were used to finance a $120,199,855.21 commercial contract with China Railway 20th Construction Bureau Co., Limited (CR20).

Another one of the subsidiary loans approved through this facility was a $76 million loan in 2016 for the Cabinda Water Supply System (Lot 2) Project.

The proceeds of this loan were used to finance a $88,843,371.24 commercial contract with China Railway Construction (International) Limited. Record ID#65749 captures the loan for Lot 1 and Record ID#65750 captures the loan for Lot 2.

The Cabinda Water Supply System (Lots 1 and 2) involved the construction of a new water supply system in the city of Cabinda.

More specifically, it involved the construction and installation of 300 intake water pumping stations, 4 water towers, several water treatment plants, 4 reservoirs, 800 kilometers of piping, and 30,000 household water supply connections. The inauguration ceremony for the water intake system was held on November 7, 2020.

📋 Staff Comments

The Portuguese project title is Construção de novo sistema de abastecimento de água da Cidade de Cabinda - Lote 1. The Chinese project title is 卡宾达供水项目 or 的卡宾达供水工程.
This project is linked to Project ID#65750, a $76 million loan for Cabinda Lot 2 water supply system, and Project ID#65748, the $2.1 billion in financing provided to water and energy sector projects.

📚 Sources & References

Angola awards 69 contracts under China’s credit line
Monitor Infrastrutture e Costruzioni
Africa Research Bulletin
ANGOLAN ENERGY SECTOR
Angolan Energy Sector
中国批出信贷额度支持安哥拉能源和水资源项目
通讯：为了让他们早日喝上干净水——记中企承建安哥拉卡宾达供水系统工程
Iª Série
国际集团三项非洲工程主体完工获当地政府点赞
让自来水流向卡宾达的千家万户
Water Treatment Plant of Cabinda Water Supply Project in Angola Complete
安哥拉最大供水工程首批送水管道入户通水中国铁建承建
让员工安心让亲属放心 ——中铁二十局千名海外员工抗疫纪实
PRINCIPAIS PERSPECTIVAS DO SECTOR DAS ÁGUAS NO ÂMBITO DO PROGRAMA NACIONAL DE DESENVOLVIMENTO
HUAMBO GANHA NOVO SISTEMA DE CAPTAÇÃO DE ÁGUA
MEMORANDUM N° 16/2016 (25/01/2016) 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.