Angola | Chinese company hired to build hydroelectric plant

The government of Angola has hired a consortium made up of the China Gezhouba Group Corporation (CGGC) and Niara Holding to build the new Caculo Cabaça dam, in the Middle Kwanza Basin, according to a presidential order.
The order authorizes the Ministry of Energy and Water to sign the contract with the consortium in the amount of 489.6 billion kwanzas (about USD4 billion), which will be secured through a loan from a Chinese bank.
According to information from the consortium, cited by Portuguese news agency Lusa, the value of the contract is set at US$4.5 billion and 80 months of work to build the dam with a capacity to produce 2,171 megawatts of electricity.
The specifications provide for construction of tunnels, civil works, supply, installation and testing of electromechanical equipment.
It also authorizes inclusion of the project in the Public Investment Program (PIP), and the finance minister, Armando Manuel, will “identify the fiscal space needed for initial payment of work” and negotiate a loan from the Industrial and Commercial Bank of China with hedging by the China Export and Credit Insurance Corporation (Sinosure), to “ensure full payment of the contract.” MDT/Macauhub