VENTURES AFRICA – The Multilateral Investment Guarantee Agency (MIGA), a part of the World Bank Group will guarantee up to the limit of $512 million loans contracted by Angola to expand the country's Cambambe Hydroelectric complex, a statement released by the World Bank said.
MIGA is a World Bank institution responsible for insuring against political risk. It will guarantee up to that amount for the next 13 years as compensation for loans granted in case of non-payment up to the due date for Angola's sovereign financial obligations.
The statement revealed that the Hong Kong and Shanghai Banking Corporation, Société Générale and BHF-Aktiengesellschaft have granted the Angolan government a $300 million loan to build the second power plant at Cambambe, one of two operational hydro-electric dams on the Cuanza River.
The planned expansion involves the installation of four generator turbines to generate an additional total capacity of 700 megawatts, based on a contract for engineering, acquisitions and constructions awarded to Brazil's Odebrecht.
The project is part of a larger programme to repair and expand hydroelectric projects, with the aim of increasing electric power production in Angola from about 1,500 megawatts to more than 5,000 megawatts.
The Cambambe dam in Cuanza Norte province was opened in 1962; its current capacity is 180 megawatts. The process of repairing, modernising and expanding the hydroelectric complex began in 2009.
When fully operational the two plants will be able to supply electric power to 8 million people.
Demand for electricity supply has grown in Angola, as in most parts of Africa. Angola will see one of the highest growth rates in Africa supported by investments in its vast oil fields.
The country is the second biggest oil producer in Africa after Nigeria.
