A memorandum of Understanding (MoU) has been signed for the implementation of an electricity and water supply project in Angola, particularly in the provinces of Cunene, Namibe, Cuando Cubango, and Huíla.
The MoU was signed in the United States between the government of the West African country represented by João Baptista Borges, the Minister of Energy and Water, and Sun Africa, a leading utility-scale solar project developer, and off-grid solution provider.
Sun Africa will be partnering with AfricaGlobal Schaffer (AfGS), a project developer and boutique consulting firm, in the project.
The objective of the electricity and water distribution project in Angola
Speaking during the signing ceremony, Borges said that the objective of the project is to supply electricity and water to the population and promote the emergence of economic ventures in the beneficiary provinces and the entire country at large.
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“The electrification will be done either through conventional solutions, with the extension of lines and the construction of substations, or by using solar energy. The US is one of the leading countries in the world in the installation of these systems, mainly in the remote regions, where this solution is the most available and accessible”, explained the minister.
Borges said that as soon as the contracts for the project are signed the execution period will be defined, predicting that the project could be implemented in a span of 24 months.
Funding for the project
Reportedly, the electricity and water distribution project in Angola requires an investment of approximately US$ 1.5bn.
Sun Africa plans to raise the funds from the U.S. Export-Import Bank (Ex-Im Bank), the official export credit agency of the United States that provides working capital guarantees (pre-export financing), export credit insurance and loan guarantees, and direct loans (buyer financing) to American businesses in a bid to promote U.S. goods and services.
