The Angolan government has approved an additional loan of €247.8 million from Standard Chartered Bank for its energy sector. The funds will be used to finance the construction of an electrical transmission system that will be associated with the Lauca hydroelectric plant.The hydroelectric plant on the Kwanza River, between Kwanza Norte and Malanje provinces, will be the second largest dam on the continent.
The infrastructure, which cost more than $4.3 billion, has an estimated capacity of 2,070 MW.
In October 2016, the Angolan government announced that it was looking for alternative financing solutions, following the suspension of the credit line granted by Brazil, because of a corruption scandal that involved Odebrecht, the Brazilian company in charge of the construction of the dam. Following this announcement, it obtained $5 million from the Development Bank of Southern Africa (DBSA), $220.5 million from Chartered Bank and $150 million from Gemcorp.
The first turbines of the plant were inaugurated in August 2017 and work on the plant continues.