AfDB, Angola sign two loan agreements worth $124.4 million to finance sanitation project for coastal towns

The African Development Bank Group (www.AfDB.org) on Tuesday signed two loan agreements with the Government of Angola to improve access to climate-resilient and sustainable sanitation services in four coastal towns serving a combined population of 1.4 million.

The agreements - for a $75 million loan from the African Development Bank and $49.4 million from the Africa Growing Together Fund (AGTF) - will benefit Benguela, Baía Farta, Catumbela and Lobito, in western Angola. The Africa Growing Together Fund is a $2 billion facility sponsored by the People’s Bank of China and administered by the African Development Bank.

Angolan finance minister, Vera Daves de Sousa and African Development Bank Country Manager for Angola, Pietro Toigo, signed the agreements in Luanda, Angola.

The Coastal Towns Inclusive Sanitation Project is part of the Angolan government’s efforts to improve water and sanitation service delivery in the country, in line with its Vision 2050 which promotes sustainable and climate-resilient water and sanitation infrastructure and service provision.

The project area in which the towns are located, is an important economic and logistics hub for Angola, and the project is expected to improve the health and socioeconomic situation of the populations there. Access to sanitation services is crucial to meeting the health demands of Angola’s rising population, increasing urbanization, and socioeconomic development.

De Sousa, who serves as African Development Bank governor representing Angola, expressed her government’s appreciation to the African Development Bank for its development efforts in Angola in multiple sectors.

“We are embarking on a transformative journey and this historic agreement solidifies our commitment to improving sanitation services and enhancing the living environment that will significantly impact the well-being of our citizens,” she said.

In addition to addressing critical sanitation issues, the project will include the construction of sewage reticulations, wastewater and faecal sludge treatment plants, improving the sanitation value chains, and capacity building. These initiatives align perfectly with Government’s vision healthier and more sustainable future and the Sustainable Development Goals. 

Toigo said: “the Government of Angola took a momentous step forward to promote clean and hygienic living conditions for communities in the four coastal towns. We are delighted to be launching an innovative integrated project that combines elements of infrastructure investment, support to private sector operators; community-led sanitation and governance to improve the sustainability of public utilities”. He noted that the project would provide valuable lessons and experience, and drives changes in the sector and expand similar initiatives across the country. 

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