Standard Chartered announced a Є1.29 billion financing package for the Angolan Ministry of Finance to construct photovoltaic electricity distribution infrastructure. The new generation systems will support rural villages across the country to become more self-sufficient and less reliant on Angola’s main electricity network.
The electrification project is being developed by the Angolan Ministry of Energy and Water and will benefit approximately one million Angolans in 60 communities. These are namely the provinces of Moxico, the country’s largest province located in the East, Lunda Norte and Lunda Sul in the North East, Bié in the central part of the country and Malanje that is found in the North West.
The loan will fund 48 hybrid photovoltaic generation systems with energy storage that act as ‘mini grids’ and operate autonomously and will provide access to 100% renewable electricity for communities not connected to the national electricity grid. Additionally, the financing will support the expansion of the national grid in Malanje and build new lines and networks connecting other municipalities. The installation of the new electricity network will help diversify the country’s energy mix and calculations3 show that it can save up to 7.9 megatonnes of CO2 emissions.
The financing is backed by German Export Credit Agency Euler Hermes and the contractor MCA Group is managing the construction and project management. Of the Є1.29 billion total, Є1.2 billion is supported through Euler Hermes and the remaining Є0.09 billion is a commercial loan.
Standard Chartered acted as sole Bookrunner, Original Lender, Structuring Bank and Mandated Lead Arranger. The Bank structured the financing to help meet eight of the United Nations’ Sustainable Development Goals and align to environmental and social risk management international best practices.
Yoshi Ichikawa, Head of Structured Export Finance for Europe, Standard Chartered Bank, said: “We are thrilled to complete the financing of this important project for the Angolan government to supply renewable energy-sourced electricity to local communities. It’s another great example of our collaboration with ECAs and contractors to deliver for our clients.”
Edna Schöne, Executive Board Member, Euler Hermes, said: “We are really proud that we, as ECA, can play a part in supporting this sustainable project with Export Credit Guarantees of the Federal Republic of Germany. This project is not only of crucial importance for Angola and sub-Saharan Africa but helps to reduce greenhouse gas emissions. We are pleased that many German small and medium-sized companies are involved in this project and will contribute to its success with their technology and know-how.”
Manuel Couto Alves, Executive Chairman and Founder, MCA Group, said: “For MCA Group, it is most inspiring to be part of projects that help shape the future of communities and countries. We take particular care in helping our generation and those to come to have a brighter planet and a cleaner nature by using natural energy sources. We truly aim at empowering lives for generations.”