Angola+Infrastructure+Projects

China Likely To Continue Infrastructure Projects In Angola In The Next Five Years For Continued Access To PNGSM Wealth
In the next five years China is likely to continue to invest in Angola infrastructure projects that coincide with their PNGSM investments. Chinese infrastructure projects in Angola are used to pursue further PNGSM investments. There have been a total of 7 infrastructure projects totaling USD 1.1 billion that include various infrastructure development; some of these deals are to be repaid with resource exports and access to offshore blocks. Of this money, China has pledged to construct and reconstruct roads, electrical networks, hydroelectric dams, water treatment plants and other various water projects. China has also invested USD 2.5 billion into strictly oil projects; of that USD 1.2 billion is to be used for agricultural development and in exchange China will receive oil exports. These infrastructure projects correspond with China's interest in Angola's natural resources.
 * Executive Summary: **

In 2009 China, specifically the China Development Bank gave Angola a USD 1.2 billion loan for agricultural development. The project aims to guarantee agricultural goods while creating jobs in rural and poor areas. According to the chairman of China's Exim bank, "We are ready to provide a credit line worth over USD 1 billion, but we think the amount is insufficient and that it could be increased to meet Angola's concrete needs in the areas of agriculture, grain production and processing agricultural products." This deal is unique because it is to be repaid to China in the form of oil exports and by awarding contracts to Chinese companies.
 * Discussion: **

In 2009 CNOOC and Sinopec purchased a 20 percent stake in Block 32, an offshore oil asset of Angola for USD 1.3 billion.Both groups formed a 50:50 joint venture to purchase the stake, which is a 1,965 square-mile share of Block 32. There have been 12 oil discoveries in the block to date and because of China's stake they are entitled to a percentage of those newly discovered resources.

The list below outlines miscellaneous infrastructure projects in Angola that did not correspond to petroleum, natural gas and strategic mineral investments. These 7 infrastructure projects total USD 1.1 billion and vary among electrical networks, water projects, street construction and dams.

(USD) || Location || Key Chinese Companies Involved || Description || Corresponds To || million || Quifangondo (Luanda), Cacuaco district || Eximbank || Rehabilitation of the residual waters treatment stations || Misc. || million || Caxito (Bengo), Uige and Negage (Uige) || Eximbank and China Road and Bridge Corporation (CRBC) || Reconstruction of the national road that links the Angolan city of Uige to the municipality of Maquela do Zombo || Misc. || million || Caxito (Bengo) || Kanazuri Electric || Repair of the Mabubas hydroelectric dam || Misc. || million || Angola || Eximbank || Road rebuilding || Misc. || million || Angola || Chinese government || Grant for infrastructure, energy and investment || Misc. || million || Unknown - across eight provinces || Eximbank || 17 loan agreements for the construction of hospitals, energy and water treatment plants || Misc. ||
 * Date || Price
 * 2008 || 50 million || Dundo (Lunda Norte province) and Saurimo (Luanda Sul province) || Eximbank || Funding for the expansion of the electrical network || Misc. ||
 * 2008 || 29
 * 2008 || 56
 * 2009 || 21
 * 2010 || 500
 * 2010 || 8.2
 * 2012 || 500

** Analytic Confidence: **
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, worked alone while also collaborating with a group, and did not use a structured analytic method. The subject is moderately complex and the deadline was moderately easy to meet.


 * Analyst: ** James Gibson