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Angola pursues hospital rehabilitation with US$10 million OPEC Fund loan

88/2005 September 8, Vienna, Austria
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The OPEC Fund for International Development today signed a US$10 million loan agreement with the Republic of Angola to help rehabilitate and expand the 300-bed Luanda Hospital. Located in Palanca, 10km from Luanda City, the hospital was originally constructed as a unit for tuberculosis patients. The project will upgrade it to a provincial facility for general health care.

The new hospital will provide a much-needed boost to Angola’s ailing health sector, which is struggling to overcome the legacy of four decades of civil war. Many provinces have almost no functioning health infrastructure and medical manpower is extremely scarce. Due to meager budget resources, investment in the sector has been limited. The resultant health status of the population is a source of concern, in particular the prevalence of diseases such as malaria, HIV/AIDS, tuberculosis and trypanosomiasis.

Under the project, the existing hospital building will be rehabilitated and a new block with a floor area of 1,786m² will be constructed. New departments will be added to expand its capacity to provide a full range of diagnostic and treatment services. These include out-patients clinics, surgical suites and an intensive-care unit. Although equipped to offer general medical services, the facility will focus on the treatment of communicable diseases, which are rife in the surrounding areas. A full complement of furniture and equipment will also be provided.

On completion, the hospital will serve a population of around 1.5 million people, who will benefit from easier access to better quality health care. In the longer-term, this will contribute to reducing mortality rates, raising life expectancy and generally improving the overall quality of life.

Previously, the Fund has approved five loans to Angola for projects in the agriculture, education, and transportation sectors. In addition, grants have supported polio eradication efforts, teacher training and social infrastructure development.

Today’s agreement was signed in Vienna by H.E. Dr. Fidelino Loy de Figueiredo, Ambassador of the Republic of Angola to Austria, and by H.E. Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.

DATA SUMMARY
Project: Luanda Hospital Expansion and Rehabilitation
Sector: Health
OPEC Fund loan: US$10 million
Lending terms: Interest rate of 1.5% per annum, with an annual service charge of 1% on amounts withdrawn and outstanding; maturity of 20 years, including a grace period of 5 years.
Borrower: The Republic of Angola
Executing agency: Ministry of Health

Implementation period: 3 years
Appraising agency: Arab Bank for Economic Development in Africa (BADEA)
Loan administrator: BADEA

Cofinancier: Government of Angola

Total cost: US$21.06 million
Project description:

The project will comprise the following:  

  • construction of a new block of 1,768m 2and rehabilitation of the existing building;
  • provision of equipment and furniture; and
  • consultancy services.