Active Mixed AidData Chinese Aid

ICBC provides $550 million export buyer's credit loan for Phase 2 of Kilamba Kiaxi Housing Construction Project (Linked to Record ID#47101)

$550K USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Government of Angola
Country	Angola
Start Date	Dec 08, 2016
End Date	Jun 20, 2026
Duration	3,481 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`67333`

Grant Description

ICBC provides $550 million export buyer's credit loan for Phase 2 of Kilamba Kiaxi Housing Construction Project On December 8, 2016, the Industrial and Commercial Bank of China (ICBC) signed a $550 million loan facility agreement with the Government of Angola for Phase 2 of Kilamba Kiaxi Housing Construction Project.

📋 Loan / Grant Terms

📅 Maturity16 years

⏳ Grace Period3 years

Repayments were scheduled to commence in December 2019 (at the end of the loan availability period).

The proceeds of the loan were to be used by the borrower finance up to 85% of the cost of a $607 million commercial contract CITIC Construction as well as 85% of the cost of a Sinosure credit insurance policy (premium). As of March 31, 2022, the loan had not yet disbursed.

The purpose of the project is to design and build 10,000 social housing units and related infrastructure-- including roads, water supply and drainage systems, sewage systems, electric lighting systems, reclaimed water systems, afforestation, traffic signals, natural gas systems, and telecommunication systems-- in Kilamba New City (Kilamba Kiaxi Housing District).

CITIC Construction — a subsidiary of CITIC Group, a Chinese state owned conglomerate — signed the EPC contract with a work period of 28 months on December 21, 2015 Implementation began on April 24, 2017.

ICBC also provided a $2.5 billion loan for Phase 1 of the Kilamba Kiaxi Housing Construction Project (as captured via Record ID#47101).

📋 Staff Comments

This project is also known as the First Stage of Phase 2 of the Kilamba Kiaxi Housing Construction Project. The Chinese project title is 建设K.K.项目第二期.
No sources explicitly state that this loan 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 (CITIC), 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.

📚 Sources & References

From October 29 to November 1, 2012
Angolan K.K.10,000 Major Municipal Project, ‘Oil for Housing’: Chinese-built New Towns in Angola
驻安哥拉大使崔爱民应邀出席中信建设K.K.项目二期第一阶段大市政工程项目开工仪式
Presidente angolano elogia projeto da CITIC no país
安哥拉 K.K.10,000 项目大市政工程
安哥拉K.K.二期大市政项目举行道路通车仪式
Chinese Loans to Africa Database
THE REPUBLIC OF ANGOLA U.S.$500,000,000 9.375 per cent. Notes due 2048
M／LT Export Credit Insurance, ‘Oil for Housing’: Chinesebuilt New Towns in Angola
Global Medium Term Note Programme
Mixed reviews for Kilamba Kiaxi
Angola’s giant city of the future 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.