Standard Chartered announces its lead role in arranging a EUR538 million financing for the Republic of Angola to support the expansion of Luanda's potable water distribution network under Phase 2 of the transformative Quilonga Grande Water System project.

Commissioned by Empresa Pública de Águas (EPAL), under Angola’s Ministry of Energy and Water, this transformative project will expand the Greater Luanda Metropolitan Area’s integrated water distribution system. The project will draw water from the River Kwanza and process it through a new treatment plant with a capacity of 518,000m³ per day. The enhanced distribution network is expected to provide reliable access to clean water for approximately five million people across the region.

The second phase of this critical water distribution project is expected to significantly improve access to safe drinking water for a rapidly growing urban population, helping to alleviate chronic shortages and reduce reliance on informal water vendors. By strengthening the water supply network, the project is also expected to lower the incidence of waterborne diseases and create more than 1,500 direct jobs during the construction phase, delivering both public health and economic benefits to local communities.

Standard Chartered acted as ECA Coordinator, Structuring Bank, Sole Bookrunner and Mandated Lead Arranger for the transaction.

Mustafa Sajjad Hussain, Executive Director, Development & Agency Finance at Standard Chartered said: "This financing underscores Standard Chartered's commitment to supporting sustainable infrastructure development across Africa. The Quilonga Grande Phase 2 project represents a transformational investment in Angola's future, helping to improve access to safe and reliable drinking water for millions of people in the Greater Luanda Metropolitan Area. By bringing together the Republic of Angola, Bpifrance Assurance Export, Sfil and leading international partners, we are proud to have structured a financing solution that will deliver long-term social and economic benefits while supporting the country's development priorities."

The project is being developed by a consortium led by Casais Engenharia e Construção, S.A. (Casais), a leading Engineering, Procurement and Construction infrastructure contractor based in Braga, Portugal.

Helder Araujo, Board Member, Casais Group said: “Luanda is growing fast, and reliable potable water comes before everything else; given its impact on public health and dignity, the ability of families and businesses to look ahead all depend on it. Phase 2 is what carries treated water into homes, schools, and healthcare facilities and that is where the difference will be mostly felt. Casais has been building in Angola for over three decades. A project of this scale is only deliverable when a public promoter, an international consortium and lenders come together, committing to this unique long-term objective. And that is what this financing is all about!”.

Given the significant involvement of leading French suppliers in the water and sanitation sectors, the financing received support from the French Treasury through Bpifrance Assurance Export (Bpifrance AE), acting on behalf of the French State. The comprehensive insurance cover provided by Bpifrance AE offers lenders substantial credit risk mitigation, while ensuring reliable funding for the French companies participating in this strategically important infrastructure project for Angola.

Complementing the support provided by the French State through Bpifrance Assurance Export, Sfil, a French public development bank, is participating in the financing through its export credit refinancing scheme. By acquiring a portion of the commitments from the original lenders, Sfil strengthens the financing structure while enhancing commercial banks’ capacity to support future investments and development projects across Angola.

Anne Crépin, Head of Export Credit at Sfil commented: “We are particularly proud to participate in the financing of this project which, once completed, will make a significant impact in the daily life for millions of citizens in Luanda. Its implementation showcases the technical expertise of several large and medium-size French industrial companies providing key equipment for this infrastructure.”

This latest mandate builds on Standard Chartered's strong track record of financing critical infrastructure across Angola. The Bank previously supported the World Bank-backed BITA Water Project[1], helping to expand access to reliable water services and improve living standards for communities across the country. Together, these transactions demonstrate the Bank's continued commitment to supporting sustainable development and economic growth in Angola.