PR Authorizes USD 1.6 Billion in Direct Adjustments for Drought Combat in Huíla – Omatapalo, Odebrecht, and Sinohydro Among the Selected – GemCorp Finances and Manages the Projects

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The President of the Republic authorized, through direct adjustment, a set of projects worth USD 1.6 billion for combating drought in Huíla. In total, 12 lots have been awarded to companies such as Omatapalo, Odebrecht, and Sinohydro. GemCorp will be responsible for financial management and coordination and will also finance government projects with USD 1.9 billion.

The document accessed by Novo Jornal states that the simplified contracting process, based on material criteria, is justified by “external financing reasons.”

“The Executive, represented by the Ministry of Energy and Water, after consulting and engaging various stakeholders, carried out numerous surveys and initiated a broad Action Plan to Combat the Effects of Drought in the Southern Region, covering the Provinces of Cunene, Huíla, and Namibe,” reads the document authorizing the expenditure.

Financial management and coordination for implementing the drought effects combat program in southern Angola, in the province of Huíla, will be entrusted to GemCorp, for USD 90 million.

The projects are divided into 12 lots (H1, H2, H3, H4, H5, H6, H7, H8, H9, H10, H11, H12), with the respective supervision services already awarded, costing USD 40.9 million, distributed among various companies and supervised by Dar Al-Handasah Consultants (Shair and Partners) B.S.C. Closed, which will charge the Angolan State USD 29.6 million.

For Lot H1, a public works contract for the investigation and utilization of groundwater in the Chela aquifer, in the city of Lubango, USD 28.6 million is allocated, in a contract to be signed with OMATAPALO, also chosen for Lot H2, which involves the construction of supplementary wells in the Chela Aquifer and associated works, worth USD 140.6 million.

The works for Lot H3, for the construction of the Nhene dam and associated works in the Caculovar basin, including topographic surveys, geotechnical investigation, and execution project, will be awarded to Sinohydro Corporation – Angola branch, for USD 246.9 million.

Sinohydro Corporation will also handle Lot H4, a contract for constructing the ETA, an adduction pipeline from the Nhene dam to the ETA and Pumping Station, worth USD 76.6 million, and Lot H12, a service contract for emergency supply works and associated services for the Water and Sanitation Company of Huíla, worth USD 139.9 million, shared with ACQUACORP – Water Services, Ltd.

Tecnovia, another company benefiting from these direct adjustments, will be responsible for Lot H5, which includes the construction of the Nhene dam and associated works in Lubango, including the construction of a regional storage tank, an adduction pipeline from the ETA to the tank, and the supply network, costing the State USD 120.6 million.

Lot H6, which involves the rehabilitation and expansion of Lubango’s water distribution network, worth USD 113.8 million, will be handled by Engevia, Lda, which will also be responsible for building the integrated water supply system for the communes of Chiba and Jau, in the municipality of Chibia, valued at USD 109.1 million.

Lots H7 and H11 will be managed by the OECI consortium, from the Odebrecht group, and Bento Pedroso Construções, which will build the N’Opombo dam on the Caculovar River, in the Quihita commune, and the water supply systems for the Chimhemba and Chian communities, Gambos, in the Gambos municipality, from the adduction canal associated with the N’Opombo Dam. The two contracts are worth over USD 325 million.

Lots H8 and H10, for constructing the adduction canal associated with the N’Opombo dam, from its downstream to the municipal headquarters of Chiange, in the Gambos municipality, including auxiliary works, and the Water Supply System for the Quihita Commune, Chibia Municipality, from the adduction canal associated with the N’Opombo Dam, will be awarded to the Spanish company QGMI – Construcciones e Infraestructura Globales.

These projects will be funded using approximately USD 1.9 billion from GemCorp to João Lourenço’s government to cover expenses for drought combat projects, construction, rehabilitation, expansion, or improvement of the water supply system, with institutional, operational, and commercial projects related to public water companies and other maintenance projects in this sector, according to the prospectus related to the USD 1.5 billion public debt issuance that Angola carried out on December 27 of last year.

The President of the Republic delegates to the Minister of Energy and Water the authority, with the ability to subdelegate, for the approval of procedure documents, as well as for verifying the validity and legality of all acts performed, including the signing and conclusion of the corresponding contracts.

It also authorizes the project’s registration in the Public Investment Program (PIP).

Novo Jornal, 02/05/2025