HomeIndustry SectorsFinance and PolicyAngolan government and Chinese firm sign contract for $982m power plant

Angolan government and Chinese firm sign contract for $982m power plant

Construction firm, the China Machinery Energy Corporation (CEMC) and the Ministry of Energy and Water in Angola have signed a deal for a gas fired generation plant, situated in Soyo, in the North West of the country.

The total cost of the plant is in the region of $982 million. The first cash injection ($147.7m) will be provided by the Strategic Financial Oil Reserve for Basic Infrastructure. The project forms part of Angola’s Public Investment Programme and is aimed at bridging the country’s energy gap and ‘boost socio-economic development of the country’.

Gas found in Angola’s deep water oil wells that has traditionally been ‘flared off or re-injected into the oil reservoirs’ will be harnessed to be used as the plant power source.

Angolan citizens until today continue to be plagued by protracted blackouts. Ventures Africa reports that in 2012, government had disclosed its plans to invest $17 billion in the energy sector to address the power deficit; this has since increased to $23 billion.

The country’s installed capacity sits at 1.8 GW and plans to increase this to 9GW by 2025. One of Angola’s most ambitious projects includes the build of a 2GW Laúca hydroelectric power station in the Kwanza riverbed on border of the Cuanza Norte and Bengo provinces in Angola.