SADC and Angola - CMI

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SADC and Angola

The Case of Infrastructure Development

Luis Bonfin & Elling N. Tjønneland

Draft paper prepared for the CMI-CEIC Annual Conference Luanda, 2 July 2009

Infrastructure – new priorities? 1 SADC – cooperation for infrastructure development 3

Infrastructure priorities 5 Challenges 7

Angola and regional infrastructure 8 Principal Investments in Infrastructure – a statistical overview 10

SADC’s overall vision is to eradiate poverty in Southern Africa. It seeks to achieve this through an ambitious agenda revolving around the promotion of regional economic integration, peace and security in the region. Infrastructure programmes – such as a major cross-border projects in energy, water and transport – has remained an important component for SADC since its establishment in 1980. Angola has remained a key player in SADC’s infrastructure projects - as the (former) co-ordinator of SADC’s work in the energy and host of the SADC sector-coordinating unit in energy (later SADC’s Energy Commission). Currently, several of SADC’s priority projects in infrastructure involve Angola. And above all: infrastructure development remains a key priority in reconstruction and rebuilding of Angola This paper summarises SADC’s main polices and efforts to promote regional infrastructure development, identifies key projects involving Angola and highlights key future challenges. First, however, the paper will look at recent trends in infrastructure development in Africa.

Infrastructure – new priorities? Infrastructure investments (energy, water and sanitation, transport and information and communication technology) have been lagging behind in Africa compared to other regions in the South. Development aid to Africa, in particular, has also given much more priority to social and institutional development and reduced allocation to infrastructure projects. However, there has been a dramatic push for infrastructure investment and development in Africa over the past few years. There has been a strong focus on national and domestic

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projects, but we also been a dramatic shift towards the development of regional infrastructure.1 At the strategic and political level one of the early and most important expressions of these new priorities was the NEPAD founding statement from 2001 which identified infrastructure as a key sectoral priority and called increased investment both in maintenance and in new infrastructure, new regulatory frameworks, and the promotion of public-private partnerships. This was followed by various pan-African initiatives and plans, such as the NEPAD Short Term Action Plan. At the global level the donor countries and partners in the South also agreed to a number of steps to strengthen infrastructure development. The Monterrey conference on Financing for Development agreed inter alia that improved infrastructure was essential for sustained economic growth, poverty reduction and employment creation. An Infrastructure Consortium for Africa was also established in 2005, hosted by the African Development Bank, to facilitate the mobilisation of investment in African infrastructure. The new political objectives and agreements to invest more in infrastructure have also led to some improvements. Investments have also risen significantly in certain areas. The African Development Bank, the European Commission and the World Bank – which together account for around 70% of all external donor money to the infrastructure sector on the continent – have agreed to improve collaboration in their interventions in the various infrastructure sectors and to give priority to inter alia support to regional projects and to AU/NEPAD “flagship” projects. There has also been a major increase of funding available for infrastructure projects. Significantly, the entry of China and other emerging powers have also helped strengthen the focus on infrastructure. Partly through provision of significant development finance. China, in particular, had a strong focus on transport and hydropower projects. Chinese construction companies were also important in implementing infrastructure projects – also projects funded by others. In contrast China has never had a strong focus on regional projects in their Africa engagement.2 In addition there has also been a strong growth in private investments in infrastructure, but these have tended to be concentrated to primarily telecommunications and energy sectors and also to a limited number of African countries. Despite progress and an increased development finance and investments in infrastructure challenges remain. Africa still lags behind all other regions of the developing world in infrastructure endowment. The largest gap being is in the energy sector. Insufficient investment and maintenance – together with poverty and affordability - keeps access rates to modern infrastructure facilities services low in nearly all African countries. It is estimated that

1 There is large body of literature available on infrastructure development in Africa. See e.g., the chapter on infrastructure in Economic Commission for Africa and OECD, The Mutual Review of Development Effectiveness in Africa: Promise and Performance, Addis Ababa and Paris: UNECA and OECD 2009 (available from www.oecd.org). The chapter also contains a list of key literature. 2 There is a rapidly expanding literature on China, other emerging power and their role in Africa. See, e.g., the chapter on emerging powers in E. N. Tjønneland From Aid Effectiveness to Poverty Reduction. Is foreign donor support to SADC improving? (Foprisa Research Report no 4, Gaborone: Botswana Institute for Development Policy Analysis 2008) (available from www.foprisa.net). See also the recent conference report on China and regional infrastructure, China as a driver of regional integration in Africa: Prospects for the future. Conference Report. .A joint conference hosted by The Centre for Chinese Studies & The Development Bank of Southern Africa, 31 March - 1 April 2008 Development Bank of Southern Africa, Midrand, South Africa

http://www.oecd.org/

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household access to electricity in Africa is around half the levels observed in South Asia which has comparable levels of per capita income. Similar tends are evident in access to safe drinking water and sanitation with countries on sub-Saharan Africa on track to meet e.g., the Millennium Development Goal of 75% access by 2015. A recent joint Africa-OECD review of progress in infrastructure development and poverty reduction concludes with a series of recommended actions3. African governments need to

• make further progress in developing strategic frameworks, • improve project preparation, development of business plans and

implementation, • give increasing priority to regional projects, including better co-ordination

between regional bodies; and • intensify efforts to ensure more equitable provision of basic services to rural

areas Recommendations to northern development partners (OECD) include

• Sustain the current expanded investment in infrastructure, including regional projects;

• Provide adequate resources for upstream project preparation to help accelerate implementation of projects and programmes;

• Provide capacity support for RECS, regional sectoral bodies and infrastructure agencies at country level;

• Take into account the impact of climate change in programmes of support for regional infrastructure; and

• Increase the number of joint-financing opportunities by playing a greater role in bringing China and other partners and the private sector into regional infrastructure projects.

Southern Africa is better off than other regions in sub-Saharan Africa in regional co-operation in infrastructure development. How is the situation - and what are the challenges?

SADC – cooperation for infrastructure development SADC has been the instrument and regional body advancing co-operation in infrastructure development in Africa. In the early years of the organisation – the 1980s – reducing dependence on South Africa was a major objective for SADC’s predecessor, SADCC. This included strong efforts to build regional infrastructure outside South Africa. The other leg of the current SADC, the Frontline States, focused on the political issues and support to the liberation struggle. With the liberation of Namibia and the end of apartheid in South Africa the conditions for accelerating development changed dramatically. South Africa joined SADC and SADC’s objectives were redefined with an action programme focusing in economic integration. Still, SADC struggled with transforming its programme of action into a clearly defined programme for economic integration. This led to a number of steps beginning with the major decision in 2001 to centralise the coordination and implementation of SADC’s

3 See the reference to the report above (note 1).

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programmes to a strengthened SADC Secretariat in Gaborone. This involved the closing down of all sector co-ordinating units and commissions in member countries, including the Energy Commission in Luanda. Energy issues, together with water, transport and related sectors, were now to be dealt with by a small directorate on Infrastructure and Services in the Secretariat. Furthermore, SADC also adopted new strategic frameworks and priorities for action through the 2004 Regional Indicative Strategic Development Plan (RISDP) and the Strategic Indicative Plan for the Organ on Politics, Defence and Security Cooperation (SIPO).4 However, it became increasing clear that neither the restructuring nor the new priorities were sufficient to put SADC on a new course. SADC’s “engine room” – the Secretariat – remained particularly weak in human and financial management capacity and in its ability to facilitate strategy development and policy harmonization. Furthermore, the RISDP and SIPO as blueprints for development were far too broad in its list of strategies, priority interventions and activities. Finally, there was a growing mismatch between SADC’s institutional structures, financial resources and priorities. Over the last two years a number of steps have been taken to address these shortcomings and failures.5 One important milestone was the adoption of the Windhoek Declaration in 2006 which sought to improve the partnership between SADC and its international cooperating partners. This led to the establishment of thematic groups between SADC and partners in priority areas. These groups were expected to facilitate resource mobilisation and improved effectiveness of external financial support, inter alia, by support to a joint work plan. Later SADC also decided to establish ministerial clusters in priority sectors and to make further efforts to strengthen the role of national focal points and committees to help facilitate stronger ownership and participation by SADC member states. At SADC’s Consultative Conference and Summit on Poverty in Mauritius in April 2008 a number of initiatives were launched to help strengthen SADC’s poverty focus. One important outcome was the Declaration on Poverty Eradication and Sustainable Development signed by the SADC Heads of States and Governments. In this Declaration SADC resolved to work towards the establishment of a regional Poverty Observatory. The Secretariat’s background paper on the Poverty Observatory calls for the establishment of a regional mechanism to monitor the implementation of RISDP’s poverty reduction objectives. It seeks to supplement SADC’s monitoring through the regional statistics programme and macro economic convergence programme. The observatory is intended as a multi-stakeholder consultative forum to monitor objectives, targets and actions. Another background paper outlined a proposed Regional Poverty Reduction Framework. This was essentially an effort to operationalise RISDP’s poverty reduction interventions in such a

4 For a background and further discussion see E. N. Tjønneland & G. le Pere, Which Way SADC? Advancing co-operation and integration in southern Africa, Johannesburg: Institute for Global Dialogue (Occasional Paper No 50, October) 5 See two previous reports by the E. N. Tjønneland: SADC and Donors – Ideals and Practices. From Gaborone to Paris and Back (Foprisa Research Report No 1, Gaborone: Botswana Institute for Development Policy Analysis 2006) and From Aid Effectiveness to Poverty Reduction. Is foreign donor support to SADC improving? (Foprisa Research Report no 4, Gaborone: Botswana Institute for Development Policy Analysis 2008) (both reports are available from www.foprisa.net), and an important recent article by Leda Giuffrida & Helmut Müller-Glodde, “Strengthening SADC institutional structures – capacity development is the key to the SADC Secretariat’s effectiveness”, pp 120 -148 in A. Bösl et al. (eds.), Monitoring Regional Integration in Southern Africa Yearbook, Volume 8, Stellenbosch: Trade Law Centre for Southern Africa 2008.

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way that activities are identified that will have an impact on poverty in the short to medium term. Such activities are not sufficiently addressed in the current implementation of SADC’s strategies and policies. The new framework seeks to translate RISDP’s poverty intervention objectives into an implementation framework. It wants to do this by identifying the bridge between national poverty reduction strategies and regional interventions. It focuses on high impact areas where a regional approach is expected to complement and bolster national interventions. To this effect the draft framework also pays more attention to cross-border issues in order to improve consistency between national strategies and programmes on the one hand and the regional strategies and programmes on the other. This shall also enhance the visibility and relevance of regional interventions to country policy makers. The poverty reduction framework also identifies intervention areas where SADC can have high impact with poverty focused interventions.6

Infrastructure priorities The role of infrastructure in SADC’s programme of action has shifted over the years. It was central in the early days – the 1980s. Other objectives and priorities emerged during the 1990s, but in recent years the role of infrastructure has again been emphasised. The RISDP argues strongly that infrastructure development is the driver of regional development and integration. Four thematic intervention areas are identified and highlighted in the RISDP:

• Ensuring the availability of reliable and cost-effective energy supplies; • Provision of efficient, cost-effective and safe transport, communications and

meteorology systems; • Improving access to water and sanitation; and • Using tourism to achieve sustainable development

The Infrastructure and Services directorate is in charge but has a number of regional subsidiary organisations (such as the Southern African Power Pool) or project management units (e.g., WESTCOR - the Western Corridor Project). A separate Project Preparation and Planning Unit is to be established and hosted by the Development Bank in South Africa.7 Significantly, there is also a renewed emphasis in SADC on development corridors which seeks to integrate trade, transport and cross-border-co-operation. Several such corridors are being developed in the eastern part of Southern Africa. These trade-related infrastructure projects have been given a further boost with the co-operation between three RECs – COMESA, East African Community and SADC. Following the April 2009 conference

6 See more on this in the SADC Secretariat’s The Regional Poverty Reduction Framework: Background document, SADC International Conference on Poverty & Development, 18 – 20 April, Port Louis, Mauritius. 7 This is derived from SADC Action on Infrastructure. Strategic Intervention on Accelerating Provision of Priority Regional Infrastructure, Gaborone: SADC 2007 (prepared for the SADC Summit in 2007 by SARDC) and the SADC Secretariat’s Infrastructure support for regional integration, poverty reduction and development (thematic background document) comprising the following sectors: energy, transport, water, communications/ICT and tourism, background paper prepared for the SADC International Conference on Poverty and Development, 18-20 April 2008, Mauritius.

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between the three they launched North South Corridor Programme as an effort to implement an economic corridor-approach to reducing costs of cross-border trade.8 Three thematic groups between SADC and international cooperating partners (donors) have been established. These groups are intended to facilitate resource mobilisation and a more effective delivery of development finance for infrastructure development. These groups are in energy (with Norway as lead donor), water (Germany/GTZ) and transport (UK/DFID). Examples and illustrations from SADC-donor relations in water group may shed some light on what is happening and some of the challenges SADC is struggling with.. The Secretariat’s Infrastructure and Service directorate has a small, but important water division (WD). Its work in response to the RISDP objectives is guided by three key documents:

• The 2000 Revised Protocol on Shared Water Courses. This creates the overarching framework for the transboundary management of shared water courses in the SADC region;

• The Regional Strategic Action Plan for Integrated Water Resource Management and Development is the framework for implementing the SADC water protocol. In the second phase (2005-2010) there are some 14 projects belonging to four strategic interventions areas: regional water resources planning and implementation, infrastructure development support, water governance, and capacity building; and

• The 2006 Regional Water Policy is a comprehensive SADC policy document which is aimed a providing a framework for sustainable, integrated and co-ordinated development, utilisation, protection and control of national and transboundary water resources in the SADC region, for the promotion of socio-economic development and regional integration and improvement of the quality of life.

The Water Division’s (WD) capacity has been severely constrained by a gradual reduction of professional staff since 2003. Currently it has one core staff (funded through the regular budget) and 2 technical advisors (funded by donor agencies). In addition there are a range of subsidiary organisations in the form of shared water course institutions, mainly river basin commissions. The SADC region has 15 shared water courses and the aim is to have shared institutions for all of them.9 SADC established its water sector co-ordinating unit in Lesotho in 1996. It became the Water Division (WD) in the SADC Secretariat in 2003. In 1999 donors providing support to the water sector, together with the Maseru unit, organised themselves into the Water Strategy Reference Group (WSRG). Following the 2006 Windhoek Declaration and the decision to

8 See also the communiqué from COMESA, ECA and SADC, “North South Corridor Pilot Aid for Trade Conference. Outcomes, Conclusions and Way forward”, Lusaka, 7 April 2009. South Africa has played a key role in the developing the corridor and the South Africa’s Development Bank acts as the Secretariat for many of these initiatives. 9 See more in SADC’s work in this field in B. Hollingworth & T. Chiramba (eds.), Implementing the SADC Regional Strategic Action for Integrated Water Resource Management (1999-2004): Lessons and best practice, Gaborone, Bonn: SADC Water Division, GTZ, inWent and UNDP 2005; SADC, Regional Water Policy, Gaborone: Infrastructure and Services Directorate, SADC Secretariat 2006; and P. Widmoser & H. Krugmann, SADC Water Resources Management Project (April 2003 – March 2007), External Review 2007, unpublished report prepared for the Swiss Development Cooperation 2007.

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launch a thematic group the WSRG was reconstituted. In 2007, Germany, through GTZ, was appointed the lead donor in this group. Meetings of the group are co-chaired by the WD and the lead ICP. The WD is responsible for preparing minutes of meetings and to distribute them. It meets regularly twice a year with extra-ordinary meetings if and when required. Typically the meeting has two elements, namely a pre-meeting in the afternoon prior to the main WSRG meeting, where donors coordinate through the lead donor, and the main WSRG meeting during which the WD reports back on progress in implementing the action plan and problem areas.10 The WSRG is intended as a strategic advisory group to the SADC Secretariat and the WD, and acts as an interface for a policy and technical dialogue between the WD and ICPs. It also provides input to specific strategic documents and processes. The task of the WSRG is to reduce transaction costs for SADC as well as for donors and to improve the quality and coherence of dialogue and support. In mid-2008 the WSRG through the lead ICP (GTZ) in co-operation with the SADC WD carried out a major survey of donor support to SADC’s water programme. It identified 58 donor-funded programmes and projects in transboundary waters in the SADC region with a focus on river basins. 9 bilateral and 6 multilateral agencies provide funding in four major areas: water governance; water wisdom; urgent water and sanitations needs; and water resources financing.11 A dedicated website has also been set up to keep track of external support. It is envisaged that this website will be moved to the SADC/ICP subsite on the SADC homepage once it is functional. The SADC action plan provides the framework for mobilising external development finance in the water sector. The main donors also appear to adhere to this framework and seek to provide support to advance the implementation of this plan. Harmonisation beyond this and beyond information sharing remains limited. There is limited joint funding. The main exemption is DFID support which is now channelled through GTZ. Within the significant capacity building support – crucial because of the limited capacity of the WD - donors have failed to agree on a common approach. Currently GTZ is providing funding to the directorate for the hiring of technical advisors, while the Danish support for technical assistance is provided on different terms. Despite the political will to do so the donors have so far found that the transaction costs of harmonising such support have been too high.

Challenges SADC’s faces numerous challenges in its efforts to develop and implement its infrastructure programme. This includes:

- Capacity: Technical capacity has been extremely weak following the restructuring of SADC, and is only now slowly improving. This has impacted negatively on SADC’s ability to develop fundable projects as well as to facilitate implementation. It has also meant that SADC’s ability to promote regional co-operation among member states and

10 See also the Terms of Reference – Water Strategy Reference Group (WSRG), unpublished, 7 pages, adopted 6 May 2008. 11 The draft report from consultants is available as Activities of International Cooperating Partners in transboundary water cooperation in the SADC Region – Results of a mid 2008 survey, Technical Report, September 2008, commissioned by the SADC Water Division and implemented by GTZ. A short draft executive summary is also available as a separate document.

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to assist member states has been much less than expected. Further investments in capacity building is crucial to ensure delivery and implementation;

- Adding value: There is a constant need to ensure that SADC adds value to national development efforts and that it programmes and projects offer benefits to all members. This remains a challenge in a region with vast differences and uneven development between member states and where members may have different priorities and expectations;

- Poverty focus: SADC needs to put much more efforts into ensuring that its investments in infrastructure have a strong impact on poverty reduction. Actual benefits in the past has been less than anticipated. The Mauritius conference in April 2009 was a major step in ensuring better focus on poverty, but progress since then has been limited. :

- Development finance and aid effectiveness. SADC is critically dependent on external finance to develop and implement infrastructure projects. This may be more difficult and more costly to mobilise with the global financial crisis. Some improvements in aid effectiveness have been achieved through the thematic groups. It will also be important for SADC to do more to engage with new and emerging powers, such as – and in particular China - and ensure that their important and rapidly expanding involvement in infrastructure is aligned with regional priorities and programmes.

Angola and regional infrastructure Peace in Angola has led to massive injection of funds to support the government’s ambitious infrastructure development programme. The bulk of this is geared domestic reconstruction and needs, but there are also important projects and initiatives with implications for regional infrastructure and relations with neighbouring countries and with Southern and Central Africa. Key elements here are the rehabilitation and modernisation of the Benguela railway and the Lobito harbour. Feasibility studies are underway to link Mocambedes Railway to Namibia. Angola and Zambia have also agreed on a plan to expand the existing railway line and to build road linkages to boost trade. Angola also plays a critical role in SADC’s effort to improve regional infrastructure. The Secretariat and its Infrastructure and Services directorate lists several priority projects which involves Angola, mainly in transport (rail/road/harbour) and energy.12 They are (in various stages of preparation and some under implementation):

• The Western Corridor Power-Interconnector (WESTCOR) which links the power systems of five SADC countries and aims to transfer power from DRC/Inga to the South;

• The Lobito transport corridor (linking Angola to DRC and Zambia through port, railway and road developments);

• The Trans-Cunene Corridor to improve border crossing procedures between Angola and Namibia;

12 See, e.g., SADC Action on Infrastructure. Strategic Intervention on Accelerating Provision of Priority Regional Infrastructure, Gaborone: SADC 2007 (prepared for the SADC Summit in 2007 by SARDC)

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• Transfer of water from the Congo Basin to water scarce countries in the South (feasibility stage); and

• Water supply and sanitation in Lubango, Huila province Subsequent work on Angola and regional infrastructure by the authors will examine at the implementation of one or more of these projects, most likely energy co-operation and the role of WESTCOR. This may focus on the poverty reduction impact of the se project using the emerging SADC approach as assessment tools; on the international financing aspect, including the role of different types of donor agencies and funding sources; or how the Angolan authorities assesses its regional role and relation.. Below we have put together the various infrastructure investment projects in Angola and their funding status and source based on data from government sources. Several observations can be. One is the importance of Chinese finance in development of infrastructure in Angola. Chinese development finance and investment can be found in nearly all 15 SADC member countries, but it heavily concentrated in Angola and South Africa.13 China Construction Bank and China’s EximBank provided the first funding for infrastructure development in 2002. The funding was provided directly to Chinese firms and was concentrated on transport (railways) and energy (electricity networks).This was followed in 2004 by a major financial package (USD 2 billion) for public investment (credit lines/concessional loans through EximBank). This covered a range of sectors, including energy and transport. A new oil-backed loan (USD 2 billion) with EximBank was secured in 2007 to finance an additional 100 projects. In December 2008 an additional USD 1 billion loan from EximBank was secured. Typically, projects indentified as priorities by Angolan ministries are submitted to a joint Angolan/Chinese committee. For each project put out to tender China will nominate 3-4 Chinese companies. The loan operates like a current account. When ordered by the Ministry of Finance, disbursements are made by EximBank directly into the accounts of the contractors. Repayment starts as soon as a project is completed. Revenue from oil sold under the agreement is deposited into an escrow account from which an exact amount toward servicing the debt is then deducted. In 2005 a private Chinese institution, the Hong Kong-based China International Ltd extended USD 2.9 billion towards reconstruction. This credit facility is managed by Angola’s Reconstruction Office (GRN) which is exclusively accountable to the Angolan Presidency. How funding has been allocate across sectors is not known, but it was expected to kick-start a number of infrastructure projects, including railways (Benguela, Mocambedes). As with EximBank credit lines, disbursements from the credit line are paid on a project-by-project base basis to Chinese contractors and suppliers. China International ran into financial problems in 2007 and had to be bailed out by the Angolan Government. A new loan from China Development Bank earlier this year is interpreted partly as a compensation for this.

13 On this see, especially Indira Campos and Alex Vines, Angola and China. A pragmatic partnership., Washington, D.C. March 2008 (working paper presented at a CSIS conference, “Prospects for Improving US-China-Africa cooperation”, 5 December 2007) and L. Corkin, “Angola’s relations with China in the context of the Economic Crisis,” China Monitor, March 2009: 4-7.

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Principal Investments in Infrastructure – a statistical overview

Table I - Investments in the Energy Sector (million USD)

No.

Project

Power (MW)

Execution time

Total Cost

Funding

1 Cambambe Hydroelectric Dam 1.1 Phase 1 (awarded)

Rehabilitation and modernisation Raising dam height

From 180 to 280

60 months

301.00

ROT14

1.2 Phase 2 (to be awarded) Construction of 2nd Generating Plant

520

42 months

1.340x106

ROT

2 440 kV transmission line Capanda – Lucala – Viana and related systems

__

18 months Completion 2009

218.00

ROT

3 220 kV transmission line Lucala – Pambos de Sonhe Uíge – Maquela do Zombo

__


303.13

ROT

4

220 kV transmission line North/Central Interconnection (Gabela – Quileva)

__


91.89

ROT

5 220 kV transmission line Gove – Belém do Huambo (Dango) – Kuito and substation

__


57.06

ROT

6 Laúca and Caculo Cabaça Hydroelectric Dams

2067 and 2051 respectively

63 and 60 months

7.2x106 ROT

7 Rehabilitation of Matala Hydroelectric Dam

__

40 months 219.00 ROT

8 Cabinda Generating Plant GE FRAME 6

2x35 Completed 120.69 ROT

9

Reconstruction of 60kV Quifangondo Mabubas line

__

17 months Completed June/06

14.59

EXIMBANK OF CHINA

10

Construction of 220kV Capanda/Lucala/Ndalatando line

__

18 months Completed July/07

28.24

EXIMBANK OF CHINA

11

Rehabilitation and expansion of Luanda electricity distribution grid – phase II

__

24 months Completed October/07

44.50

EXIMBANK OF CHINA

12 Construction of 3rd 220kV Cambambe/Luanda line and expansion of Luanda HV grid (expansion of grid to the South zone)

__

17 months Completed November/07

38.36

EXIMBANK OF CHINA

13 Construction of new Luanda South substation; partial rehabilitation

__

15 months

44.69

EXIMBANK OF

14 ROT = Recursos Ordinários do Tesouro (Ordinary Resources of the Angolan Treasury)

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and expansion of Cazenga substation; construction of 20kV Viana-Luanda South-Cazenga line

Completed October/07

CHINA

Table II – Investments in the Water and Sanitation Sector (million USD)

No.

Project

Capacity m3

Execution time

Total Cost

Funding

1 Works to Luanda distribution network

__

7.52 ROT

2

Expansion of water supply and improvement of distribution in Luanda – phase 3

216 000 m3

23 months behind schedule

98.53

EXIMBANK OF CHINA

3 Improvement of water supply in upper parts of Luanda and Viana industrial zone

__

__

71.50

German credit line

4

Supply and community use of single-home water and sanitation in Luanda suburbs

__

Started

14.30

E.U.

5

Rehabilitation and expansion of 300 km of community water supply network to the city of Luanda

__

__

169.50

EXIMBANK OF CHINA

6

Kikuxi Project – phase 3

__

Completed

215.00

Brazilian credit line

7

Catumbela water catchment station

__

Completed

140.00

Brazilian credit line

8

Partial rehabilitation of Luanda water supply system (Candelabro water treatment station; new catchment station at Quifangondo; feeder pipes; public fountains)

__


44.95

EXIMBANK OF CHINA

9

Construction of Benfica, Futungo, Camama, Sapu and Viana Morar distribution network

__

24 months Started

48.00

Israeli credit line

10

Partial rehabilitation of Huambo water supply system

__


22.74

EXIMBANK OF CHINA

11

Rehabilitation of Caxito, Catete and Uíge water supply system


21.39

EXIMBANK OF CHINA

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Table III – Investments in the Telecommunications Sector (million USD)

No.

Project

Capacity

Execution time

Total Cost

Funding

1

Construction of New Generation Network (NGN) in Bié, Bengo, KN, KS, Luanda, Malange and Moxico provinces

__

28 months completed April/09

74.33

EXIMBANK OF CHINA

2

Construction of New Generation Network (NGN) in Benguela, KN, Cunene, Huambo, Uíge and Zaire provinces

__

27 months completed March/09

67.95

EXIMBANK OF CHINA

3

Construction of New Generation Network (NGN) in Bié, Huambo, Huíla and Luanda provinces (including optical fibre transmission network, IP, VSAT, intelligent network)

__

20 months completed Feb/09

75.27

EXIMBANK OF CHINA

4

Construction of New Generation Network (NGN) in Bié, Huambo, Huíla and Luanda provinces (Project 4)

__

26 months completed Feb/09

58.74

EXIMBANK OF CHINA

Table IV – Investments in the Oil Sector (million USD)

No.

Project

Capacity

Execution time

Total Cost

Funding

1

Construction of Lobito Refinery

115,000 barrels/day in Phase 1 and 200,000 in Phase 2

Completion of Phase 1 - 2012; Phase 2 - 2013

6.7x106

Internal resources (ROT)

2

ANGOLA LNG (Gas project)

To produce 5 million metric tonnes/year of LNG and liquid products of associated gases and to satisfy domestic demand of up to 125 million cubic feet/day.

Completion: February/2012 At Dec/08: degree of execution: 30%

9.1x106

Via consortium of: SONAGAS, CHEVRON, TOTAL, BP and ENI.

Table V – Investments in the Transport Sector

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(million USD) No.

Project

Capacity

Execution time

Total Cost

Funding

1 Rehabilitation of Maquela do Zombo Airport

__

__

6.94

EXIMBANK OF CHINA

2 Rehabilitation of Mbanza Congo Airport

__

__

8.89

EXIMBANK OF CHINA

3 Rehabilitation of the CFL (Luanda Railway) - Bungo/ Baia stretch

__

__

116.11 EXIMBANK OF CHINA

4 Rehabilitation of the CFL (Luanda Railway) - Baia/Malange stretch

__

__

EXIMBANK OF CHINA

Table VI – Investment in rehabilitation of roads (million USD)

No.

Project

Km

Execution time (months)

Total Cost

Degree of execution (%)

Funding

1 Rehabilitation of Lubango/Santa Clara highway:

Ondjiva/Humbe stretch 107 49 221.53 96 EU Humbe/Cahama stretch 88 39 33.20 47 EU Cahama/Tchibemba stretch 64 42 24.15 41 ROT Tchibemba/Lubango stretch 122 42 46.03 94 ROT Ondjiva/Santa Clara stretch 40 36 15.09 2 ROT 2 Studies and plans for

Highways and Bridges _ _ 87.07 _ ROT

3 Rehabilitation of Huambo/Alto Hama highway

85 41 34.02 1 Portuguese credit line

4

Cabinda/Cacongo highway

_ _ _ _ _

Rehabilitation – phase 2 25 36 74.82 35 Portuguese credit line

Rehabilitation of 19 km

19 _ 54.55 75 Portuguese credit line

5 Rehabilitation of Cruzamento Bitchequete/ Massabi highway

22.5 45 18.52 ROT

6 Rehabilitation of Catete/Cabala/Muxima highway

65.3 30 30.15 100 ROT

7 Rehabilitation of Huambo/Kuito highway:

_ _ _ _ _

Huambo/Cutato dos Ganguelas stretch 90.2 40 34.02 51 ROT Cutato dos Ganguelas//Kuito stretch 53.8 40 23.23 18 ROT 8 Benguela/Lubango highway: _ _ _ _ _ Benguela/Catengue stretch 80 34 30.18 78 ROT Catengue/Coporolo stretch 50 36 18.87 25 ROT Coporolo/Quilengues stretch 86 35 32.45 45 ROT Quilengues/Cacula stretch 54 35 20.38 52 ROT Cacula/diversion via Matala stretch 49 39 18.49 ROT Matala/Lubango stretch (diversion) 42 39 15.85 ROT

14

9 Rehabilitation of Benguela/Dombe Grande highway

48 19 59.12 92 ROT

10 Rehabilitation of Calandula/Cuale/Massango highway

148 24 109.52 6 ROT

11 Rehabilitation of Tchibemba/Chiange/Kamal do Chiange highway

20 12 24.99 9

ROT

12 Rehabilitation of B.Dande/Ambriz link roads

50 12 35.16 50 ROT

13 Rehabilitation of Lobito/Benguela highway


14 Rehabilitation of Sumbe/Gabela/Quibala highway

151 45 30.02 69 Deutsche Bank

15 Rehabilitation of Lucala/Samba Caju/Camabatela/Negage highway

179 31 67.54 35 ROT

16 Rehabilitation of Uíge/Quinzala/Damba/Quibocolo/Maquela do Zombo highway

257 61 96.98 40 ROT

17 Rehabilitation of Quibala/Cariango/Mussende highway

133 39 50.19 38 ROT

18 Rehabilitation of Quibala/Luati/Calulo/S.Pedro da Quilenda/Ponte Rio Longa highway

36 106.17 2 ROT

19 Rehabilitation of Matala/Dongo/Cuvango/Cuchi/ Menongue highway

323 39 121.88 24 ROT

20 Rehabilitation of Munenga/Calulo highway

38 28 22.47 33 ROT

21 Rehabilitation of Kuito/Cachiengues/Chitembo/ /Mumbué/Menongue highway

_ 53 156.721 43 ROT

22 Rehabilitation of Ondjiva/Evale/Mupa/Cuvelai highway

170 33 64.15 21 ROT

23 Rehabilitation of Úcua/Pango Aluquém/Quibaxe/Bula Atumba highway

129 28 74.83 45 ROT

24 Rehabilitation of Samba Caju/Banga/Quiculundo/ Bolongongo/Terreiro highway

116 52 43.77 36 Brazilian credit line

25 Rehabilitation of Negage/Puri/Sanza Pombo/Quimbele highway

218 63 82.26 15 ROT

26 Rehabilitation of Caála/Longonjo/Ganda/Cubal/ Catengue highway

229 28 86.41 42 ROT

27 Rehabilitation of Caála/Cuima/Cusse/Caluquembe/ Ngola/Cacula highway

_ 52 182.10 40 ROT

28 Rehabilitation of Caxito/N’Zeto/Tomboco/ /M’Banza Congo highway

434 47 163.77 7 EXIMBANK OF CHINA

29 Rehabilitation of Luena/Lucusse/Lumbala N’Guimbo/Chiume/Neriquinha highway

578 63 218.10 20 ROT

30 Rehabilitation of Cuangar/Calai/Dirico/Mucusso /Luiana/Rivungo highway

756 60 2 852.71 ROT

31 Rehabilitation of Talamungongo/Kambundi Katembo highway

66 22 47.14 5 ROT

32 Rehabilitation of Malange 337 53 127.16 3 ROT

15

/Mussolo/Culamagia/Luquembo/ Quirima/Sautar highway

34 Rehabilitation of Caculama/Quela/Kunda dia Baze highway

103 53 62.77 6 ROT

35 Rehabilitation of Cuima Gove highway 104 18 23.77 2 ROT 36 Rehabilitation of Kuito/Andulo/

Calussinga/Mussende/Cangandala/Malange highway

409 12 154.33 22 ROT

37 Construction of Cabassango/Lucula highway

66 60 62.61 22 ROT

38 Rehabilitation of N’Zeto/Soyo highway 167 56 63.01 ROT 39 Rehabilitation of Cacuso Capanda

highway 40 33 36.89 95 ROT

40 Rehabilitation of Cacongo/ Dinge/Buço Zau highway

74 56 112.22 25 ROT

41 Rehabilitation of Cabinda/ Yema highway 24 21 9.06 31 ROT 42 Rehabilitation of Alto Hama/

Bailundo/Catchiungo highway 157 27 130.69 26 ROT

43 Rehabilitation of Kuito Cuanavale/Mavinga highway

154 44 58.11 ROT

44 Rehabilitation of Caxito/ Onzo/Muxaluando highway

105 27 39.62 43 ROT

45 Rehabilitation of Lombe/ Quota/Calandula/Senda highway

160 33 60.38 52 ROT

46 Rehabilitation of Banga/Ald.Nova/Terreiro highway

55 24 30.42 ROT

47 Rehabilitation of Sanza Pombo/ Cuilo Pombo/Quipanda/31 de Janeiro highway

37 24 21.50 ROT

48 Rehabilitation of Capanda/Alto Dondo highway – Parcel 1

71 18 80.01 21 ROT

49 Rehabilitation of Matala/ Capelongo/Mulondo Mucope – EN 105 junction highway

242 24 152.65 ROT

50 Rehabilitation of Cabassango/ Pove/Zenza Lucala highway

70 30 46.40

ROT

51 Rehabilitation of Dombe Grande/ Equimina/Lucira highway

152 27 170.15 56 ROT

52 Rehabilitation of Dundo/ Cassanguide/Cambula highway

87 24 61.17 16 ROT

53 Rehabilitation of Massangano link road 21 24 11.61 ROT 54 Rehabilitation of Bailundo/S.

Miguel/Cruzamento de Cassongue highway

89 24 54.23 ROT

55 Rehabilitation of Bolongongo/Gondo/Canzela highway

27 24 14.93 ROT

56 Rehabilitation of Bolongongo/ Maua/Camabatela highway

65 24 35.95 ROT

57 Rehabilitation of Balombo/Ebanga/Ganda highway

98 24 59.71 ROT

58 Rehabilitation of Conda/Cunjo highway – Km 11

47 24 55.84 2 ROT

59 Rehabilitation of Dundo/Lovua highway 67 24 47.10 ROT 60 Rehabilitation of Lobito/Balombo/

Luindimbale/Huambo highway _ 33 84.12 59 ROT

61 Rehabilitation of Luau/Cazombo highway 277 24 30.35 2 ROT 62 Rehabilitation of Malange/

Marimba/Mangando highway 221 20 155.96 5 ROT

16

63 Rehabilitation of Menongue/ Caiundo/Catutui highway

158 45 169.12 14 ROT

64 Rehabilitation of Ponte do Lucunga/Songo highway

73 24 44.48 ROT

65 Rehabilitation of Lucala/Senda highway 62 24 34.29 ROT 66 Rehabilitation of Huíla (km 16) /Palanca

highway (diversion) 37 20 23.15 ROT

67 Rehabilitation of Maria Teresa/Caxito highway

61 16 50.81 6 ROT

68 Rehabilitation of Ndalatando/ Caxilo/Golungo Alto highway

60 18 34.45 ROT

69 Rehabilitation of Pango Aluquém/Quibaxi highway

42 24 59.32 35 ROT

70 Rehabilitation of Quiage/Quiquiemba highway

20 12 29.31 4 ROT

71 Rehabilitation of Quibaxi/Quiaxi highway 61 18 36.12 11 ROT 72 Rehabilitation of Quibaxi/Bula Atumba

highway 56 32 44.37 17 ROT

73 Rehabilitation of Caculama/Mucari/Tala Mungongo highway

43 18 34.23 ROT

74 Rehabilitation of Dumba Cabango/Luquembo/Quirima/ Sautar/Munhango highway

217 28 105.78 9 ROT

75 Rehabilitation of Negage/Bungo/Damba highway

81 32 68.77 47 ROT

76 Rehabilitation of Cazombo/ Umbala/Caquengue/Lucusse highway

303 39 342.10 ROT

77 Rehabilitation of Luena/Dala/ Muconda/Luau/Cazombo highway

518 48 195.46 24 ROT

78 Rehabilitation of Saurimo/Muriege highway

190 24 149.39 12 ROT

79 Rehabilitation of Namibe/Tombwa highway

27,5 25 35.77 5 ROT

80 Rehabilitation of Namibe/Bentiaba/Lucira highway

38.16 21 69.73 5 ROT

81 Rehabilitation of Lubango/Tundavala highway

25 0 21.97 ROT

82 Rehabilitation of Conda/Chipindo highway

91 24 103.36 3 ROT

83 Rehabilitation of Camame/Banga highway 46 15 25.44 ROT 84 Rehabilitation of Menongue/Rio Longa

highway 86 29 41.92 25 ROT

85 Rehabilitation of various roads in the Bengo region

_ 36 77.49 4 ROT

86 Rehabilitation of Quifangondo/ Caxito/Uíge/Negage highway

- 30 211.68 100 EXIMBANK OF CHINA

Table VII – Investment in rehabilitation of road bridges (million USD)

No.

Project

Length m


Total Cost

Degree of execution (%)

Funding

17

1 Rehabilitation of bridge over river Cunene (Xangongo/Humbe stretch)

880 66 35.21 90 ROT

2 New bridge over river Dande (Barra do Dande)

105 32 21.35 ROT

3 New bridge over river Catumbela (Lobito/Benguela highway)


4 Erection of steel road bridges _ _ 31.21 30 ROT 5 Purchase of steel Bailey bridges _ _ 111.69 20 ROT 6 New bridge over river Cassai,

Muconda/Luau stretch _ 18 38.23 90 Portuguese credit

line 7 Rehabilitation of bridge over river Luinha _ 67 39.70 100 ROT 8 New bridge on Cabala/Muxima stretch,

over river Kwanza 350 51 34.80 18 Portuguese credit

line 9 New bridge over river Kwanza -

Cangandala 21 47.83 37 Portuguese credit

line 10 Rehabilitation of bridge over river

Calombotão, Benguela/Baia Farta stretch 25 47 0.553 _ ROT

11 Rehabilitation of bridge over river Jombo, Dumba Cambango/ Luquembo stretch

80 37 10.36 ROT

12 Rehabilitation of bridge over river Giraúl de Baixo, Namibe/Pipas stretch

185 36 23.97 95 ROT

13 New bridge over river Zambezi _ 12 30.37 90 Portuguese credit line

14 Rehabilitation of bridge over river Keve, Alto Hama/Bailundo stretch

60 48 7.77 ROT

15 Rehabilitation of bridges on the Saurimo/Dala/Muconda/Luau and Quibala –Keve bridge routes

_ 18 34.18 62 ROT

16 Rehabilitation of 11 bridges in K.Kubango, Huíla and Bié provinces

_ 20 87.06 10 ROT

17 Rehabilitation of bridges on the Cassongue/Uku Seles route

_ _ 61.91 _ ROT

18 Studies and plans for bridge linking Soyo/Cabinda

_ 35 11.00 55 Foreign funding

19 Reconstruction of bridge over river Tamba _ 18 8.01 Spanish credit line

20 Reconstruction of bridge over river Chinenge

_ 18 3.84 Spanish credit line

21 Reconstruction of bridge over river Luateche

_ 18 11.21 Spanish credit line

22 Reconstruction of bridge over river Luvige _ 18 3.20 Spanish credit line

23 Reconstruction of bridge over river Lufige _ 18 10.73 Spanish credit line

24 Reconstruction of bridge over river Luachimo

_ 18 10.25 73 Spanish credit line

25 Reconstruction of bridge over river Cassai _ 18 20.82 30 Spanish credit line

26 Reconstruction of bridge over river Luveto _ 18 4.00 Spanish credit line

27 Reconstruction of bridge over river Capungo

_ 6 8.48 17 Spanish credit line

28 Reconstruction of bridge over river Nhia 2 _ 7 4.80 45 Spanish credit line

29 Reconstruction of bridge over river Lualo _ 7 7.68 Spanish credit line

30 Reconstruction of bridge over river Luembe _ 7 11.53 57 Spanish credit line

18

31 Reconstruction of bridge over river Chilume _ 7 7.68 Spanish credit line

32 Reconstruction of bridge over river Mombo _ 19 13.45 28 Spanish credit line

33 Reconstruction of bridge over river Luchico _ 18 6.73 9 Spanish credit line

Table VIII – Investment in Road Networks (million USD)

No.

Project

Length km


Total Cost Degree of execution (%)

Funding

1 Construction of dual carriageway access road to University Campus

15 24.75 20 ROT

2 Rehabilitation of Samba highway – phase 3 52 47.78 30 Brazilian credit line

3 Rehabilitation of Samba highway, Costa do Sol/Estrada do Golfe stretch

30 93.50 70 ROT

4 Rehabilitation of Rua Alípio Macuéria 3 17 35.62 5 Deutsche Bank 5 Construction of access road to Nova Vida

Housing Project 17 3.64 5 Deutsche Bank

6 Construction of motorway/ UAN/Sapu/Golfe link road

17 154.93 Deutsche Bank

7 Construction of motorway/ Futungo/Lar do Patriota link road

17 99.21 5 Deutsche Bank

8 Construction of motorway/ Futungo/Av.21 de Janeiro link road

13 46.50 90 Deutsche Bank

9 Rehabilitation of Estrada do Golfe, Gamek/Antigo Controlo stretch

35 33.16 Brazilian credit line

10 Rehabilitation of Avenida Ngola Kiluange, tranches 1 & 2

16.58 33 106.94 43 Brazilian credit line

11 Rehabilitation of 4ª Avenida 3.82 33 31.19 75 Brazilian credit line



14 Rehabilitation of Via Boavista Tungango/Estrada de Catete


15 Rehabilitation of Estrada do Golfe/Viana/Rua do Sanatório


16 Rehabilitation of Avenida Hoji Ya Henda 5.04 27 49.81 5 Brazilian credit line

17 Rehabilitation of Viana/Calumbo highway 29 33 10.94 14 Brazilian credit line

18 Rehabilitation of Estrada Viana/Kikuxi highway


19 Construction of Viana/Ramiros motorway, Viana/Cabolombo stretch (stage 2)


20 Construction of Cacuaco/Viana motorway (stage 1)


21 Construction of Viana/Ramiros motorway, Viana/Cabolombo stretch (stage 1)


22 Construction of Luanda/Quifangondo dual carriageway (tranche 1)


23 Construction of Luanda/Quifangondo dual 8 32 73.05 55 Brazilian credit

19

carriageway (tranche 2) line 24 Construction of Luanda/Viana dual

carriageway (tranche 2) 25.6 39 111.63 50 Portuguese credit

line 25 Construction of Luanda/Viana dual

carriageway (tranche 3) 32 191.23 56 Brazilian credit

line 26 Construction of Luanda/Viana dual

carriageway (tranche 1) 8 31 86.71 59 Brazilian credit

line 27 Construction of Viana/Cacuaco motorway

(stage 2) 20.4 39 61.58 Brazilian credit

line 28 Rehabilitation and widening of Estrada do

Golfe 6.2 43 26.16 Brazilian credit

line

29 Construction of Luanda orbital motorway (phase 1), crossing bridge at Cacuaco


30 Construction of highway infrastructures in Boavista area (tranche B, parcels 3, 4, 5and 6)

5.25 28.05 29 Brazilian credit line

31 Construction of highway infrastructures in Boavista area (tranche B, parcels 1 and 2)

3.7 31.51 20 Brazilian credit line

Table IX – Investment in Irrigation Systems (million USD)

No.

Project

Length km


Total Cost Degree of execution (%)

Funding

1 Regrading of Porto Quipiri dykes (phase II) 102 12.26 68 ROT 2 Irrigation project (Caxito, Gandjelas, Luena

and Waco-Kungo) – phase 1 54 11.00 100 EXIMBANK OF

CHINA 3 Irrigation project (Caxito, Gandjelas, Luena

and Waco-Kungo) – phase 2 18 54.00 100 EXIMBANK OF

CHINA

Table X – Funding for Investment in Infrastructure by Country

(million USD)

Country Amount % Angola/ROT 15 250 839 62.6 China 1 376.17 _ Brazil 1 592.42 _ Germany 441.42 _ Portugal 391.28 _ E.U. 269.05 _ Spain 132.41 _ Israel 48.80 _ Oil Company Consortium (Public/Private) 9 100 000 37.36

20

Table XI – Funding for Investment in Infrastructure by Country

(million USD) Country Amount % Brazil 1 592.00 0.22 China 1 376.17 0.19 Germany 441.42 0.06 Portugal 391.28 0.055 E.U. 269.00 0.038 Spain 132.41 0.018 Israel 48.00 0.006 Oil Company Consortium (Public/Private) 702 520.00 99.3

Table X and XI show that the major part of the investment in infrastructures is being financed from domestic resources, using the Angolan Treasury’s ordinary funds (ROT). However, if the element of investment in the oil sector – the Lobito Refinery and the Gas Project – is disregarded, China and Brazil stand out as the leading infrastructure funders, followed by Germany and Portugal.

Documents

SADC and Angola - CMI