Angola Secures €538 Million for Luanda Water Expansion

Standard Chartered has secured a €538 million financing arrangement for the Republic of Angola to facilitate the expansion of Luanda’s water distribution system under Phase 2 of the Quilonga Grande Water System project.

The initiative, overseen by Empresa Pública de Águas (EPAL) under Angola’s Ministry of Energy and Water, will extend the integrated water network serving the Greater Luanda Metropolitan Area.

Project Details and Impact

Phase 2 will source water from the River Kwanza and treat it at a newly constructed facility with a daily capacity of 518,000 cubic metres. The expanded system is projected to deliver dependable clean water services to around five million people.

The initiative seeks to alleviate water scarcity in the fast-growing urban region and diminish dependence on informal sellers. It is also anticipated to bolster public health by enhancing access to safe drinking water and curbing waterborne illnesses.

Economic and Social Benefits

Over 1,500 direct employment opportunities are anticipated during the building phase. Standard Chartered served as ECA Coordinator, Structuring Bank, Sole Bookrunner, and Mandated Lead Arranger for this transaction.

The development is being executed by a consortium chaired by Casais Engenharia e Construção, a Portugal-based engineering and construction firm.

Financing and Collaboration

This funding unites the Republic of Angola, French export credit agency Bpifrance Assurance Export, French public development bank Sfil, and international financial institutions. This partnership parallels earlier efforts, such as the World Bank-supported projects, in tackling critical infrastructure demands.

Bpifrance Assurance Export is extending insurance coverage on behalf of the French government, shielding lenders from credit risks and enabling financing for French suppliers providing equipment to the project.

Sfil is participating via its export credit refinancing scheme, purchasing a segment of the initial lender commitments. The framework seeks to amplify commercial banks’ ability to fund additional investments and development initiatives in Angola.

Anne Crépin, Head of Export Credit at Sfil, emphasized the project’s profound effect on the daily lives of millions in Luanda, showing the technical proficiency of French industrial firms delivering critical equipment.

Araujo further remarked that achieving this scale necessitates collaboration between the public promoter, international consortium, and financial partners. The deal builds on Standard Chartered’s prior infrastructure financing in Angola, including its backing of the BITA Water Project 1.