The Angolan government has decided to award the operation and maintenance of three dams to the Brazilian group Odebrecht under a US$993.4 million contract recently approved by presidential order.

The contract with the Brazilian group envisages operation and maintenance of the hydroelectric plants at Cambambe and Laúca (which Odebrecht built this year), and at Capanda, all on the Cuanza River. Also covered is modernisation of the Capanda dam, which opened in 2005 after 18 years of construction by a consortium involving Russian companies as well as Odebrecht.

The presidential order states that the contract will “provide more safety and stability in the production and supply of electric power, significantly contributing to the country’s economic and social development.”

The Laúca hydroelectric complex on the Cuanza River was a project delivered to the Brazilian group for the sum of US$4.3 billion, with the respective financing guaranteed by a credit line opened by Brazil in favour of Angola.

The Laúca reservoir should completely fill in 2018, enabling the six installed turbines to begin operation, producing nearly 2070 MW, more than double the capacity of the two dams (Cambambe with 960 MW and Capanda with 520 MW) already functioning on the Cuanza River.