The government of Angola and HSBC have finalized a €200 million financing agreement for the nationwide ProÁgua water infrastructure project, aimed at modernizing water systems and expanding access to clean drinking water across the country.
Under the arrangement, Angola’s Ministry of Finance signed the loan agreements as the sovereign borrower, with export credit agency (ECA) cover provided by Bpifrance Assurance Export and the Swiss Export Risk Insurance (Serv). The project will be implemented by a consortium comprising Switzerland’s Mitrelli and France’s Suez International.
The financing includes two components: a €30mn commercial loan facility covering the 15% downpayment, and an ECA-backed buyer’s credit worth €170mn, representing the remaining 85% of the project value.
According to a joint statement from Mitrelli and Suez, the financing structure reflects a “robust, de-risked model for infrastructure investment in emerging markets.”
HSBC acted as the sole coordinating arranger, mandated lead arranger, and facility agent. The bank played a “central role in originating, structuring, and executing the financing while facilitating efficient disbursement mechanisms and long-term repayment structures,” the statement said.
A second phase of the project is under discussion, with the goal of further extending access to safe drinking water nationwide
Bpifrance Assurance Export provided “comprehensive export credit insurance, enabling favourable terms of the financing and risk mitigation,” alongside Serv, which offered reinsurance support. Their insurance “enabled Angola to access long-tenor financing at competitive rates, while also supporting French and Swiss exports,” the stakeholders noted.
This marks the first instance in which Bpifrance has issued export credit insurance based on direct commitments from a Swiss engineering, procurement, and construction (EPC) contractor outside of France.
The ProÁgua initiative will expand and upgrade water infrastructure in the provinces of Luanda and Icolo e Bengo. According to the Angolan government, the project is expected to provide clean water to more than nine million people, addressing significant needs in areas where only 34% of the rural population currently has access to safe drinking water.
Key works include rehabilitating four major water treatment plants, building two decentralized compact units, installing six desalination units and 15 boreholes, and introducing smart metering and digital utility management systems. Angola’s public water utility will serve as the local implementation partner.
A second phase of the project is under discussion, with the goal of further extending access to safe drinking water nationwide.
