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Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.


Project name
Cambambe Hydroelectric Project-Phase II
Project ID
Fiscal year
Guarantee holder
HSBC Bank Plc.
Investor country
United Kingdom
Host country
Environmental category
Date SPG disclosed
March 19, 2013
Project Board date
May 23, 2013
Gross exposure
 $511.0 million
Project type
Strategic priority area
Conflict Affected
Environmental and Social Review Summary for Cambambe Hydroelectric Project-Phase II in Angola

View Summary of Proposed Guarantee

Project Description

On June 28, 2013, MIGA issued a guarantee of 391.7 million ($511.8 million equivalent) to lead arranger HSBC Bank Plc. covering a non-shareholder loan (and interest) to the Ministry of Finance of Angola for the expansion of the Cambambe hydroelectric power station. The coverage is for a period of 10 years against the risk of non-honoring of sovereign financial obligations.

The project involves the construction of a second powerhouse with four additional turbine generators with a total additional capacity of 700 megawatts on the basis of an engineering, procurement, and construction contract awarded to Odebrecht SA of Brazil. The Cambambe plant is one of two hydroelectric power stations currently in operation on the Kwanza River. The project is part of a larger rehabilitation and expansion program being undertaken by the government of Angola, under which the country’s generation capacity is set to increase from around 1,500 megawatts to over 5,000 megawatts.

After decades of underinvestment into the power sector, Angola suffers from chronic electricity shortages that are hampering the country’s economic development. A recent government policy document, “Policy and National Energy Security Strategy” estimated that only 30 percent of the population has access to the power distribution network.  Electricity from this project will offer an economic and efficient means of increasing the electricity supply. Rebuilding and improving critical infrastructure is a pillar of the World Bank’s strategy for Angola’s development. The project is also aligned with MIGA’s strategic priorities of supporting investments in complex infrastructure projects as well as in countries affected by conflict.

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