The information was advanced this Wednesday by the Secretary of State for Finance and Treasury, Otoniel dos Santos, at the opening of the Capital Markets Forum, organized by Media Rumo.
The minister stressed that the Executive has a portfolio of projects that it intends to develop through PPP, which do not have a "universal model".
One of the modalities that he believes will play an important role in infrastructure development is project bond financing known as "Project Bonds".
"Developers, regulators and market operators have identified Project Bonds from their inception as an important potential source for financing infrastructure and quality services," he indicated.
These are project bond loans that are based on the attractiveness of a particular project, with the debtor's risk being replaced by the risk of the project itself, he explained, admitting that there are obstacles to overcome for them to become a reality in Angola's capital market.
However, "there is much evidence of appetite from international investors for a financing vehicle with these characteristics," he said, adding that the government has received isolated proposals, normally from construction companies that propose financing with attractive interest rates as long as they are awarded the works.
Also in the Health sector there are proposals for business models that include financing of the construction work and acquisition of hospital equipment from a specific supplier.
"Proposals of this nature are unfeasible from the start because they do not obey the requirements of the public contracts law and because this financing, having the State's responsibility as collateral, tends to aggravate the public debt, but can be seen as an embryo to properly conceive the PPP and its financing model," stressed Otoniel dos Santos.
Mário Caetano João, Secretary of State for the Economy, noted that the difference between the need to finance infrastructures and the available financial resources in Angola is of about 30 percent, until 2040, pointing out an "enormous potential" for PPPs, whose operationalization is foreseen in institutional and legal terms in the National Development Plan.
Until December 2021, 41 projects have already been identified in four areas, including infrastructure and transport (29), agri-industrial (6), social (4) and housing (2), and the government is "open" to approaches from the private sector that include other projects, he said.
The Government has already been approached by some financial banking institutions and is focused on projects with regional impact, fundamental to minimize risks and to mobilize funds from the regional community, such as the Southern African Development Community (SADC), said Mário Caetano João.
Project Bonds are one of the ways, but there are other hypotheses such as bank loans, credit lines, sovereign guarantees, investment guarantee agencies, among others, he indicated.
The Secretary of State for the Economy noted that financing PPPs via capital markets, as in the case of Project Bonds, has several advantages, namely having consigned bonds, i.e., the captured revenues would be destined to a certain project, clearly identified before any issuance.
Other benefits would be investor diversification, capital market development, and institutional capacity building, but there are also negative factors, such as greater bureaucracy and the need for human resources, he detailed.
