ATI "issues insurance support for the Water Supply Project (BITA), guaranteed by the World Bank in Angola," the institution announced Tuesday in a statement issued in Nairobi.
The BITA Project consists of investments in water production, transmission and distribution, intended to serve two million people in the urban and peri-urban belts of Luanda, and is expected to have significant environmental and social impacts in improving the sanitary conditions of the population residing in the Angolan capital.
The project, partially guaranteed by the World Bank, will be financed through a 15-year syndicated loan from five commercial and private banks (Standard Chartered Bank, UK; BNP Paribas, Crédit Agricole and Société Générale, French, and Swiss bank Credit Suisse).
The lenders provided up to 910 million dollars to Angola, which acted through the Ministry of Finance, with the World Bank issuing a guarantee on the loan.
The size of the investment required for the project and the level of risk not covered, justified the Angolan government to initiate discussions with ATI to secure relevant credit insurance options.
ATI provides lenders with second-loss insurance above the World Bank guarantee of up to $351 million to cover principal and interest, guaranteeing the financial close of BITA. The ATI coverage will mitigate the risk that the Government of Luanda will not make debt service payments.
The Angolan government has guaranteed BITA's budgetary commitment in the 2019 State Budget. The project is designed to be financially sustainable and generate cash flows.
