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Hitachi ABB Power Grids and other Swedish companies building solar power in Angola

With equipment and engineering expertise for solar farms from Hitachi ABB Power Grids in Sweden, the Sun Africa project is contributing to sustainable energy in Angola. A partnership with Elof Hansson International is also enabling other Swedish companies to supply equipment for the project. The Swedish Export Credit Corporation (SEK) is financing the transaction, which is guaranteed by the Swedish Export Credit Agency (EKN) and arranged by ING Bank, with an export credit of EUR 560 million.

The share of sustainable energy is growing

Facts

Transaction: Export credit CIRR
Amount: EUR 560 million
Maturity: 18 years
Borrower: State of Angola
Buyer: Angolan Ministry of Energy and Water
Exporter: MCA Portugal/Sun Africa
Arranger and agent bank: ING Bank
Guaranteed by: EKN, 100 percent

Facts

Transaction: Export credit CIRR
Amount: EUR 560 million
Maturity: 18 years
Borrower: State of Angola
Buyer: Angolan Ministry of Energy and Water
Exporter: MCA Portugal/Sun Africa
Arranger and agent bank: ING Bank
Guaranteed by: EKN, 100 percent

From a Swedish perspective, the business project is the successful result of constructive collaboration between many different parties within Team Sweden, ING Bank, the developer Sun Africa which is a US renewable energy company and the construction company MCA.

“We are proud of contributing with our latest technology and engineering knowhow. We enable a stronger, smarter and greener grid in Angola. The key to success has been the early involvement of our engineering and finance experts that has been working in collaboration with MCA, EKN, SEK, Elof Hansson and others under the Team Sweden approach. I’m glad that we as an anchor supplier can make this happen.”

Jenny Larsson, Managing Director of Hitachi ABB Power Grids in Sweden

A project that makes a difference

Angola is a country on the west coast of Southern Africa and is largely dependent on fossil fuels for its electricity generation. As a result, the Angolan Ministry of Energy and Water Resources wants to increase the share of sustainable energy in the country and switch to renewable sources such as solar. The major cities are connected to the national power grid but diesel generators are generally used in rural areas to provide villages with electricity. This project will help to replace some of these diesel generators, and increase and contribute to the electrification of several local communities.

“A project of this size will not only contribute to the country’s electricity supply, it will also make a difference to, for example, schools and households, in seven locations when solar panels are built. In addition, the cost of solar energy is lower than diesel, which will make this a good long-term investment for the country.”

Carlo Amado, Business Development Director of the MCA Group

Long-term financing

The financing from SEK covers seven photovoltaic projects – two larger projects to be connected to the main grid and five smaller projects in rural areas. The total capacity will be 370 megawatts and will make a huge difference for the country’s electricity supply. The loans extend over a long term (18 years) and the estimated construction period is two years. The financing and dialogue with the borrower, the State of Angola represented by the Angolan Ministry of Economy and Finance, was arranged by ING Bank in the Netherlands which is also the agent for the transaction.

“ING Bank is very grateful for the strong support of SEK and EKN, the contracting parties and other stakeholders in our role as Arranger of a comprehensive financing package for the government of Angola that fully funds the seven solar projects. We are delighted to have been part of this landmark sustainable project.”

Eugène Kock, Director of ING Bank in Netherlands

Several Swedish companies delivering equipment for the project
To ensure that SEK could finance the entire project, the Swedish share of the project’s content had to increase from its initial share. The global business facilitator, Elof Hansson International, was then brought in and helped MCA and Sun Africa to source and facilitate discussions with suitable Swedish suppliers to the project. The result was a project where several Swedish companies, in addition to Hitachi ABB Power Grids in Sweden, supplied everything from the steel framework under the solar panels to safety equipment and furniture’s.

“This project will not only boost Sweden’s export to Angola but it will also create a larger competence for Swedish companies to supply equipment and services to similar projects in the future. Along with equipment from Hitachi ABB Power Grids, who introduced us to the project, we have been able to source a wide range of equipment from Swedish suppliers to the project to satisfy EKN’s and SEK’s requirements for minimum Swedish interest.”

Björn Olausson, President of Elof Hansson International

 

Would you like to know more?

Contact Maria for more information.

maria.hulten@sek.se

+46 8 613 85 14

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