Standard Chartered has arranged a €538 million financing for the Republic of Angola to support the expansion of Luanda’s potable water distribution network under Phase 2 of the Quilonga Grande Water System project.

The project, commissioned by Empresa Pública de Águas (EPAL) under Angola’s Ministry of Energy and Water, will expand the integrated water distribution system serving the Greater Luanda Metropolitan Area.

The second phase will draw water from the River Kwanza and process it through a new treatment plant with a capacity of 518,000 cubic metres per day. The expanded distribution network is expected to provide reliable access to clean water for approximately five million people.

The project is intended to address water shortages in the rapidly growing metropolitan area and reduce reliance on informal water vendors. It is also expected to support public health by improving access to safe drinking water and reducing the incidence of waterborne diseases.

More than 1,500 direct jobs are expected to be created during the construction phase.

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

The project is being developed by a consortium led by Casais Engenharia e Construção, a Portugal-based engineering and construction contractor.

“This financing underscores Standard Chartered's commitment to supporting sustainable infrastructure development across Africa,” said Mustafa Sajjad Hussain, Executive Director, Development & Agency Finance at Standard Chartered.

“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,” he said.

The financing brings together the Republic of Angola, French export credit agency Bpifrance Assurance Export, French public development bank Sfil and international lenders.

Bpifrance Assurance Export is providing insurance cover on behalf of the French state, supporting lenders against credit risk and facilitating financing for French companies supplying equipment to the project.

Sfil is also participating through its export credit refinancing scheme, acquiring a portion of commitments from the original lenders. The structure is intended to increase commercial banks’ capacity to support further investment and development projects in Angola.

Anne Crépin, Head of Export Credit at Sfil, said the project would have a significant impact on daily life for millions of people in Luanda.

“Its implementation showcases the technical expertise of several large and medium-size French industrial companies providing key equipment for this infrastructure,” Crépin said.

The project consortium is led by Casais, whose Board Member Helder Araujo said the expansion would extend treated water to homes, schools and healthcare facilities.

“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,” Araujo said.

He added that delivering a project of this scale required collaboration between the public promoter, international consortium and lenders.

The transaction builds on Standard Chartered’s previous infrastructure financing in Angola, including its support for the World Bank-backed BITA Water Project 1. The bank said the two projects demonstrate its continued involvement in financing water infrastructure and broader development priorities in the country.