Active Development AidData Chinese Aid

CDB extends $1.5 billion credit facility -- via common terms agreement -- to Angola's Ministry of Finance for infrastructure projects in November 2009

$1.5M USD

Funder	China Development Bank (CDB)
Recipient Organization	Government of Angola
Country	Angola
Start Date	Nov 09, 2009
End Date	Aug 10, 2029
Duration	7,214 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`67`

Grant Description

CDB extends $1.5 billion credit facility -- via common terms agreement -- to Angola's Ministry of Finance for infrastructure projects in November 2009 On November 9, 2009, Angola's Ministry of Finance and the China Development Bank (CDB) entered into a $1.5 billion common terms agreement to support social housing, agriculture, roads and railways, schools and hospitals, water and energy production, and transportation and telecommunication projects (to be mutually agreed upon by the Government of Angola and the Chinese Government).

The common terms agreement is a master agreement under which Angola and CDB may conclude individual facility agreements for the purpose of financing the contract price owing to certain approved contractors and suppliers in respect of certain approved social and economic infrastructure projects in Angola.

The term (maturity) and amount (face value) of each facility is set out in each relevant individual facility agreement.

As of June 20, 2015, the facility was no longer available, with an aggregate of $613.5 million outstanding as of December 31, 2017 and an aggregate of $89 million outstanding as of December 31, 2021 under the individual facility agreements entered into under this common terms agreement. No oil guarantee was provided for the credit facility and its interest rate was priced on commercial terms.

According to China's Ministry of Agriculture and Rural Affairs's Foreign Economic Cooperation Center, the $1.5 billion credit facility was mainly used for agricultural development.

The projects funded through the credit facility are listed below: Pedras Negras Farm Project (Record ID#64146) Longa Rice Planting Agro-Industrial Farm Project (Record ID#64184) Camaiangala Agroindustrial Farm Project (Record ID#64200) Phase 1 of Sanza Pombo Farm Project (Record ID#64152) Camacupa Agro-industrial Farm Project (Record ID#64148) Manquete Agro-Livestock Development Project (Record ID#43785) Moçâmedes Railway Renovation Project (Record ID#64862) Camama Municipal Infrastructure Project (Record ID#67366) Caxito Irrigated Perimeter Construction Project (Record ID#64674) Ganjelas Irrigated Perimeter Construction Project (Record ID#64677) Luena Irrigated Perimeter Construction Project (Record ID#64678) Humpata Irrigated Perimeter Construction Project (Record ID#64679) Viana Integrated Infrastructure Construction Project (Record ID#67189)

📋 Staff Comments

According to China Development Bank's website, it provided Angola's Ministry of Finance with a $4 billion ‘sovereign loan’, which is a specific type of loan that only CDB issues (Chinese name: 主权类外汇贷款). It is likely that this $1.5 billion credit line (common terms agreement) is part of the $4 billion sovereign loan that is referenced. The remaining $2.5 billion is likely captured in Record ID#66806.
The interest rates, maturities, and grace periods of the individual borrowings under the November 2009 common terms agreement are unknown. For the time being, AidData relies on the weighted average interest rate (3.103%), maturity (14.6035-years), and grace period (2.6323-years) identified in the World Bank's Debtor Reporting System (DRS) for 'private' sector Chinese lending to Angola in 2009. See https://www.dropbox.com/scl/fi/rtxaogs01df9lp939q5ug/July-2024-IDS-Data-on-Angola-s-Private-and-Official-Chinese-Borrowings-and-Borrowing-Terms.xlsx?rlkey=1sm6fk1rtwhdo1nggty6v30nu&dl=03. One source suggests that borrowings under the $1.5 billion agreement with CDB were collateralized against the cash proceeds from Sonangol's future oil sales to a Chinese oil import (under a multi-year offtake agreement). This issue warrants further investigation. See http://eprints.soas.ac.uk/13596

📚 Sources & References

Angola's rising Chinese loans...
China funds US$1.2 billion project for revival of agriculture in Angola by 2012
China leads by example in the cooperation with Angola
China's development financing under BRI
主权类外汇贷款, http://www.macaomagazine.net/index.php?option=com_content&view=article&id=119:china-and-angola&catid=40:issue-5, http://oilprice.com/Geopolitics/Africa/Chinas-Waning-Influence-In-Angola.html, http://www.google.com/hostednews/afp/article/ALeqM5i0hpgnhmj3GYfBFS8IbzAJ1WDf5w
Angola wins new billion-dollar loan from China, http://www.chinafrica.cn/english/business/txt/2011-06/29/content_372702_2.htm, http://allafrica.com/stories/201209200176.html
THE REPUBLIC OF ANGOLA U.S.$500,000,000 9.375 per cent. Notes due 2048, 2015 Government of Angola Bond Prospectus
加快推动中国-安哥拉农业合作的思考与建议
国家开发银行董事长陈元谈对非业务的探索和实践
NEITHER 'FRIENDSHIP FARM' NOR 'LAND GRAB': CHINESE AGRICULTURAL ENGAGEMENT IN ANGOLA
中国国家开发银行与安哥拉财政部签署新一期融资贷款合作协议
CREATING MARKETS IN ANGOLA
China’s Oil Diplomacy: Comparing Chinese Economic Statecraft in Angola and Brazil
China-Angola aid relations: strategic cooperation for development?
Global Medium Term Note Programme
国家开发银行董事长陈元谈对非业务的探索和实践 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.

All Grantees

Government of Angola

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