Japan International Cooperation Agency ( Jica ) has signed a loan agreement with the Government of the Republic of Angola to provide official development assistance ( ODA ) for an electricity transmission system reinforcement project in the African country’s southern region.

The loan, amounting to 39.1 billion yen ( US$265 million ), has an annual interest rate of 1.2% plus 0.2% for consulting services. The repayment period is 30 years, with a 10-year grace period.

The project aims to increase transmission capacity and stabilize power supply in southern Angola by constructing new transmission lines and substations, as well as improving the distribution network. This will not only help enhance the living environment of residents but also revitalize industrial activities.

The work involves the construction of a 220-kilovolt transmission line between Nombungo and Namibe substations through the East Lubango substation; construction of the 220/60kV East Lubango and Namibe substations; development of 60kV distribution lines; and procurement of demining equipment to clear mines and unexploded ordnances along the transmission/distribution lines and at the substations.

Signatures were exchanged between Angola’s minister of finance Vera Esperança dos Santos Daves and Jica president Tanaka Akihiko in Yokohama City. The executing agency in Angola is the National Electricity Transportation Company.

The project, which contributes to Sustainable Development Goal 7 ( affordable and clean energy ), is scheduled for completion by March 2030.

Jica is co-financing the project with the African Development Bank. The project will be implemented as a parallel co-financing initiative under the Accelerated Co-Financing Facility for Africa ( Acfa ), based on the Enhanced Private Sector Assistance for Africa ( Epsa ), a joint initiative for the development of the private sector in Africa.