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Housing construction Project for Civil War Veterans in Angola

ESSEN/GERMANY, July 26, 2013 - A supplier contract between CCC Machinery, an affiliated company of Ferrostaal Equipment Solutions GmbH, and the Angolan engineering company Construções Associadas S.A. has entered into force. The order volume amounts to 52.6 million euros. The contract includes the supply of machines and structural elements for the construction of pre-fabricated houses as part of a housing project initiated by the Angolan Government. The contract also covers the structuring of investment financing via an export financing arrangement.

“Vila Residencial Maquis” housing project

On a 1,500-hectare piece of land at the edge of Angola‘s capital city  Luanda, more than 33,000 houses are to be constructed for veterans of the country’s civil war, from all sides, in addition to the required infrastructure such as water and power supplies, and educational institutions. The project forms part of a wide-ranging initiative on behalf of Angola’s Government designed to counter the strained housing situation following the end of the civil war in 2002. Construction work is due to begin at the start of next year.

Local production in tandem with international suppliers

Construction components for the buildings are to be manufactured in local production facilities, mostly consisting of machines and production lines made by German companies. CCC Machinery is responsible for the supply of machines and plants for producing steel-reinforced structural elements, procurement and assembly of equipment as well as deliveries from abroad. Suppliers for the project include, among others, Ferrostaal Commercial (Beijing) Co., Ltd. and Ferrostaal Piping Supply GmbH.

Structured project financing

For this project, CCC Machinery is structuring a bank-to-bank loan in the form of a tied buyer’s loan covered by credit insurance provided by Euler Hermes Deutschland AG. The consortium of lending banks consists of the BHF-Bank and DZ Bank. The borrower is the Angolan BPC Bank, who is extending the loan to its customer Construções Associadas. The loan will be repaid using proceeds from the sale of the pre-fabricated houses and also via mortgage loans secured by the veterans’ pension funds.