Standard Chartered announces EUR 238 million of Export Credit Agency (ECA) supported financing for the government of Angola to build new infrastructure, supporting the country’s agricultural industry and transport network.
The funding is split across two projects, each signed separately with the Angolan Ministry of Finance. The first project is a circa EUR 142 million to help construct a new bio-veterinary centre for the production and development of animal vaccines in Huambo, the third largest city in Angola. The remaining circa EUR 96 million will be used for the renovation of a section of the EN140 national road running from Mussende to Cangandala.
The term loan facilities are backed by Euler Hermes[1], the German ECA. Standard Chartered acted as Structuring Bank, Bookrunner, Mandated Lead Arranger, Original Lender, and Agent for each. A consortium of Gauff GmbH & Co. Engineering KG[2] and Noráfrica are the appointed Engineering, Procurement and Construction (EPC) contractors to design and build the bio-veterinary vaccination centre. Gauff GmbH & Co. Engineering KG is also the principal contracting party for the EN 140 road development project, working in close collaboration with consortium partner QG Konstruktion GmbH.
The bio-veterinary vaccination centre is a key project by the Angolan Ministry of Agriculture and Fisheries and comprises part of a programme initiated in order to increase agricultural productivity and reduce dependency on foreign bio-vaccine imports. A wide range of different vaccines for cattle, pigs, goats, sheep and chickens are expected to be manufactured onsite, which includes an extensive area for quality control, application testing, modern research and a separate laboratory. The aim of the project is ultimately to help develop vaccines against pathogens that occur, specifically in Africa.
Separately, the construction of the EN140 national road, which comprises the section from Mussende to Cangandala, stretches 98 km and follows on the precedent work undertaken by GAUFF GmbH & Co. Engineering KG and QG Konstruktion GmbH for the section Cariango-Mussende. The road work propels the government’s efforts to boost the socio-economic development from the center of the country, i.e., runs through the provincial capitals of Malange and Sumbe, and facilitates easier access to healthcare, education, employment, and other social services, and increase the flow of business, agricultural trade, and market access. Due to the lack of maintenance, the road was in such a poor condition that it was practically no longer passable. The successful financing of this road project will enable construction and rehabilitation according to high quality international standards as developed by the international consortium, ensuring long-term benefits to the region of Kwanza Sul where the project is located.
Christine Jordan, Structured Export Finance, Standard Chartered Bank, said: “We are proud to strengthen our strong relationship with all the stakeholders and use our on-the-ground country presence and export finance expertise to help the Angolan sovereign bring its strategic national plans to life. Our financing helps boost the country’s vaccine production independence, support local rural farmers, and improve food security and road network for the population of Angola.”
These two transactions add to the long line of ECA supported financing provided by Standard Chartered for Angola’s Ministry of Finance over the recent years. The Bank has assisted the government in financing a wide range of projects across various infrastructure sectors such as power, agricultural and healthcare infrastructure. In September 2021, the Bank announced US$ 1.1 billion financing to develop critical water supply infrastructure to serve the Angolan capital Luanda. Others include the development of three priority healthcare projects: the Mother and Child Hospital in Luanda, the Pediatric Hematological Institute of Luanda and the General Hospital of Cabinda.