Caculo Cabaça Hydropower Project, Angola

EKN is considering a guarantee for financing of services to the construction of the Caculo Cabaça Hydropower Project on the Kwanza River. With an anticipated maximum power generation capacity of 2,172 MW, Caculo Cabaça will be the largest hydropower plant in Angola.

EKN is considering to reinsure* financing to the project.

The main dam wall will be 103 m high with a crest width of 553 m. The maximum length of the reservoir will be 16,3 kilometres and an area of 16,6 km2 will be inundated. The hydropower project is part of eight dams planned for the Kwanza River Hydropower Scheme. Two hydroelectric power stations are currently in operation on the Kwanza River, while nearby Lauca is currently under construction. 

The main environmental and social issues of the project include:

  • Biodiversity and cumulative impacts in the Kwanza river.
  • Stakeholder engagement and grievance mechanism.
  • Recruitment and working (including accommodation) conditions.
  • Potential economic and physical displacement.

The Caculo Cabaça project will be classified as a category A-project. Additional information on the social and environmental impacts and required actions to better understand and mitigate those impacts will be available on this web page. The Environmental and Social Action Plan must be implemented in order for the project to comply with environmental and social requirements, which is available in the following web link:

Local EIA in Portuguese

 

The information was published on EKN´s website www.ekn.se on August 9th, 2018. Comments on the project can be made within at least 30 days. This procedure is in accordance with the OECD Recommendation on Common Approaches for Export Credit Agencies (ECAs).

*In the case of reinsurance, EKN bases its environmental and social assessment on the review previously performed by the export credit institution that applies for reinsurance with EKN. This export credit institution has previously published MSKB projects in these with the OECD's recommendation.