Angola Steps Up Luanda Water Investment With €538 Million Deal

Standard Chartered has arranged €538 million in financing for Angola to support the second phase of the Quilonga Grande Water System, a project that will expand potable water distribution across the Greater Luanda Metropolitan Area. The project was commissioned by Empresa Pública de Águas (EPAL) under Angola’s Ministry of Energy and Water. Phase 2 will draw water from the Kwanza River and process it through a new treatment plant with capacity of 518,000 cubic metres per day. The expanded system is expected to provide more reliable access to clean water for about five million people in Luanda.

Project Targets Water Shortages in Luanda

The expansion is intended to address water shortages in the rapidly growing metropolitan area and reduce dependence on informal water vendors. It is also expected to improve access to safe drinking water and help reduce waterborne diseases. Construction is expected to create more than 1,500 direct jobs.

The project is being developed by a consortium led by Casais Engenharia e Construção, a Portuguese engineering and construction company. Standard Chartered acted as ECA Coordinator, Structuring Bank, Sole Bookrunner and Mandated Lead Arranger for the financing.

Export Credit Agencies Support Financing

The financing brings together the Republic of Angola, Bpifrance Assurance Export, Sfil and international lenders. Bpifrance Assurance Export is providing insurance cover on behalf of the French state. The cover is designed to protect lenders against credit risk while supporting French companies supplying equipment for the project. French public development bank Sfil is also participating through its export credit refinancing scheme. It will acquire part of the commitments from the original lenders, allowing commercial banks to provide financing while supporting further investment in Angola.

Anne Crépin, Head of Export Credit at Sfil, said the project could have a significant effect on daily life for millions of people in Luanda. She also highlighted the involvement of French industrial companies supplying equipment for the water infrastructure.

Casais Board Member Helder Araujo said the project will extend treated water supplies to homes, schools and healthcare facilities. He said delivering infrastructure of this scale requires cooperation between the Angolan government, the international project consortium and the lenders involved in the financing.

The €538 million transaction builds on Standard Chartered’s previous infrastructure financing in Angola, including its involvement in the World Bank-backed BITA Water Project 1.