The United States Agency for International Development (USAID) will grant $1 million to Angola to establish a unit that will enable the replication of the model followed in the Lobito Corridor, it was announced today.
“The Ministry of Transport of Angola and the United States Agency for International Development (USAID) signed a Memorandum of Understanding (MOU) today in Luanda, aiming to strengthen the capacities of the transport and infrastructure sector through a strategic partnership, which includes a $1 million [940,000 euros] donation from USAID,” reads a statement distributed today in Luanda.
Announced following the visit of the U.S. President to Angola this week, the donation aims to “replicate the successful Lobito Corridor model in new strategic projects, reinforcing Angola’s role in regional and global development,” particularly through the “creation of a Project Management, Concessions, and Public-Private Partnerships Unit (UGPCP), which will be responsible for the identification, preparation, monitoring, and management of critical infrastructure projects.”
The statement explains that the U.S. agency will provide technical and financial assistance to develop this unit, while Angola’s Ministry of Transport will provide the necessary logistical and human resources for its implementation.
“Priority projects include the Southern Corridor, or Namibe Corridor, and the Caio Deep Water Terminal in Cabinda, whose international tenders will be launched soon after preparatory work is completed,” the Angolan government stated.
With an initial duration of 24 months, the memorandum includes the training of 11 specialists to join the UGPCP, the launch of new concession projects, and the implementation of innovative solutions to position Angola as a reference in infrastructure and public-private partnerships on the continent, following the international investor interest attracted by the Lobito Corridor.
The agreement was signed by the Minister of Transport, Ricardo Viegas d’Abreu, and the U.S. Assistant Secretary of State for African Affairs, Mary Catherine Molly Phee.
The Lobito Corridor is the first strategic economic corridor launched under the G7’s Partnership for Global Infrastructure and Investment (PGI) in May 2023. This was followed by the signing of a joint declaration between the European Union (EU) and the United States of America (USA) on the sidelines of the G20 Summit in New Delhi in September 2023, in support of the Corridor’s development.
In October of last year, during the Global Gateway Forum, the EU and the USA, together with Angola, the Democratic Republic of Congo (DRC), Zambia, the African Development Bank (AfDB), and the Africa Finance Corporation (AFC), signed a Memorandum of Understanding (MoU) to define roles and objectives for the Corridor’s expansion.
The AFC is the primary promoter of the project that will connect the three African countries. It is expected that the modernized and completed railway line will generate economic benefits of approximately $3 billion (around €2.7 billion) for the countries, reduce atmospheric emissions by about 300,000 tons per year, and create over 1,250 jobs during construction and operations.
Lusa, 12/05/2024
