CashNews.co
The UK Export Finance agency has announced a €22m direct loan to support the construction of a rural water supply project in the Quiminha region of Angola, which is set to be delivered by a number of British firms.
The project is being led by utility company Elecnor Servicios y Proyectos S.A.U. on behalf of Angola’s Ministry of Public Works and is designed to rehabilitate the Quiminha Dam and build new infrastructure to enable the storage and distribution of water.
The aim is to provide access to clean water for around 100,000 people in rural communities like Vila Catete, Vila Quiminha, Vila Lalama, Calumbunze and Camizunzo.
The project is also expected to support economic development in the Quiminha region by providing a reliable source of potable water that can also meet industrial and agricultural needs.
UK exporters are set to benefit from the loan, with British firms lined up to deliver around €8m worth of subcontracts as part of the project.
“This ground-breaking deal will provide vital water management that will transform lives,” said UK Minister for Africa Lord Collins of Highbury. “Our partnership with Angola is strong, and this funding will provide huge benefits, including new water supplies and protection from the harsh impacts of climate related events including drought. By teaming up to tackle climate change now, we are creating a resilient and sustainable future – it is clear that we can go far when we work together.”
The deal was also welcomed by Mustafa Sajjad Hussain, executive director for structured export finance at Standard Chartered, which was mandated by the Angola’s Ministry of Finance to co-ordinate financing for the project.
“This financing in Angola aligns with the Bank’s commitment to drive capital into areas that require sustainable infrastructure across our markets, allowing us to make a positive difference across our geographies and communities,” he said.
The deal is the second major green financing agreement from UKEF in the past few weeks, after it recently teamed up with Poland’s export credit agency to provide a €249m loan guarantee to a proposed 390MW solar project in Turkey.
You can now sign up to attend the fifth annual Net Zero Festival, which will be hosted by BusinessGreen on October 22-23 at the Business Design Centre in London.