The World Bank Group has committed a 13-year credit facility of $512m to Angola to finance the expansion of the Cambambe hydroelectric power plant through its insurance arm the Multilateral Investment Guarantee Agency (MIGA).
Expansion program includes construction of a second powerhouse featuring four additional turbine generators with a total capacity of 700MW. The government has awarded the engineering, procurement, and construction contract to Brazil-based firm Odebrecht.
In addition, the HSBC Bank, Société Générale, and BHF-Bank Aktiengesellschaft have facilitated €300m debt to Angola for the Cambambe plant, one of the two hydroelectric power stations on the Kwanza River.
World Bank Angola, Mozambique, and Sao São Tomé and Principe director Laurence Clarke said that although housed with potential resources, Angola has remained the most energy deficit country.
"Harnessing the country’s significant hydropower potential will provide an affordable and sustainable source of electricity to underpin Angola’s efforts to build a more resilient and diversified economy."
The funding is expected to drive the country’s rehabilitation and expansion program aimed at furthering Angola’s generation capacity to 5,000MW from current 1,500MW.
Angola Minister of Energy and Water João Baptista Borges noted: "MIGA’s participation in this transaction was critical to helping us mobilize the long-term debt financing to complete this project."