UK Export Finance (UKEF) has approved a £371mn guarantee for the Angolan government to support the development of a new international airport in Cabinda, alongside exports from dozens of UK suppliers.
As part of the deal, which reached financial close in July, UKEF is covering a loan from Standard Chartered to Angola’s Ministry of Finance.
Funding will support Angola’s plans to construct the new international airport to the north of Cabinda city, as well as associated facilities: a 3km overhead power line, the closure of the existing Cabinda airport and operation of the new site.
Approximately 90 UK firms are acting as sub-contractors to Innovo Projects, the project developer, UKEF says in an August 7 notice.
“A key aim of the project is to provide modern airport infrastructure that can cater for the projected growth in air traffic in the Cabinda region, and which is not possible at the existing Cabinda airport site,” it adds.
UK exporters will provide goods such as construction equipment, airport systems, airport furniture, electrical systems, luggage conveyors, and steel structures, a spokesperson for the export credit agency (ECA) tells GTR.
UKEF conducted a review of the environmental, social and human rights risks associated with the project, including health and safety hazards, emissions, wastewater treatment, the impact on biodiversity, and workers’ rights.
“Various actions have been agreed between the project developer, operator, and parties involved in the financing, which are necessary to ensure the project’s ongoing alignment with international standards,” the agency says.
“UKEF has therefore decided to provide its support in respect of the supply of goods and services by UK exporters,” it adds.
Over the past five years, Angola has frequently tapped the export finance market for infrastructure funding.
ECAs from the UK, Italy, Germany, Poland and South Africa have extended guarantees for projects including universities, roads, hospitals, and water infrastructure. The Export-Import Bank of the United States has also provided direct financing worth over US$2bn for solar and water projects in the country.
However, there are ongoing concerns over heightened claims risks in several Sub-Saharan African markets, including Angola.
