The Export Credit Agency (ECA)-supported financing is split across two projects, each signed separately with the Angolan Ministry of Finance.
The first project is a €142m scheme to help build a new bio-veterinary centre for the production and development of animal vaccines in Huambo, the third largest city in Angola. The remaining €96m will be used for the renovation of a section of the EN140 national road between Mussende and Cangandala.
The term loan facilities are backed by Euler Hermes, the German export credit agency. Standard Chartered acted as structuring bank, bookrunner, mandated lead arranger, original lender and agent for each.
A consortium of Gauff Engineering and Noráfrica is the appointed engineering, procurement and construction (EPC) contractor for the design and construction of the bio-veterinary vaccination centre.
Gauff is also the principal contracting party for the EN 140 road development project, working in close collaboration with consortium partner QG Konstruktion.
The bio-veterinary vaccination centre is a key project for the Angolan Ministry of Agriculture & Fisheries and comprises part of a programme initiated 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 on the site, which will include 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.
The construction of the EN140 road, stretching 98 kilometres from Mussende to Cangandala, follows previous work undertaken by Gauff and QG Konstruktion on the section between Cariango and Mussende.
This project is part of the government’s policy to expand the socio-economic development from the centre of the country into the provincial capitals of Malange and Sumbe.
It will enable easier access to healthcare, education, employment and other social services, and increase the flow of business, agricultural trade and market access.
Due to a lack of maintenance, the road has deteriorated to such a condition that it is now practically impassable. 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, executive director at Standard Chartered, 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.”
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