The World Bank guaranteed the government of Angola with financing package for the implementation of the BITA Water Supply Project, which has the objective to develop water supply infrastructure that will provide water to urban and peri-urban belts of Luanda.
The project is valued at US$1.09 billion and lenders have provided up to US$910 million to the Republic of Angola.
The Angolan government initiated some talks with the African Trade Insurance Agency (ATI) on matters of exploring potential additional credit insurance options, after considering the size of the project and the level of uncovered risk.
The private insurance market in conjunction with the ATI provided the lenders a 2nd loss insurance above the World Bank’s guarantee of up to US$351 million to cover principal and interest hence the project reaching a financial conclusion.
“ATI is proud of its support to the Government of Angola on its milestone transaction. As an African Multilateral, ATI is committed to supporting the development and improvement of infrastructure on the continent.
“In order to achieve this, we are very proud of the relationships and support we mobilize from the private insurance market as well as the collaboration with other multilaterals and commercial lenders,” as said by the Chief Underwriting Officer of ATI, Benjamin Mugisha.
According to the World Bank, the transformational project is critical to meet the country’s development goals as it will bring forth safe, reliable water service to South Luanda and that the World Bank team also helped optimize the project design and introduced distribution network investments to ensure connectivity.
The Ministry of Finance of the Republic of Angola stated that the BITA project has also triggered an expansion for reform of state owned firms in the water sector, and the project will support the necessary efficiency gains to the Public Water Company of Luanda (EPAL).
Angola has been battling with issues to do with drought which has hindered the country’s economy and livelihoods of its inhabitants.
As highlighted by the World Food Programme, the scarcity of rain between November 2020 and January 2021 has led to the worst drought in 40 years hence showering the citizens with difficulties in accessing water.
Innovations to create water reserves have been discussed and planned out by the government, and so alongside with other projects like the BITA Water Supply Project, the country will ease down its water challenges.