Notice

Category A project supported: Huambo-Lomaum Electrification Project, Angola

Published 12 August 2026

1. Project Description

UK Export Finance has agreed to provide support to the Ministry of Finance Angola in respect of engineering, procurement and construction services for the construction and operation of the Huambo-Lomaum overhead transmission line in Huambo and Benguela provinces, Angola.

A key aim of the Project is to reconnect Benguela Province to Angola’s national electricity grid by interlinking the western and southern electricity transmission networks, enabling renewable electricity from the Laúca Hydroelectric Plant and Central Region network to reach the main consumption centres of Benguela and Huambo.

The Project includes:

• A 150.4km 220kV overhead transmission line (OHTL) connecting the new Lomaum substation in Benguela and the existing Belém do Dango substation in Huambo;

• A new 220/60 kV substation in Lomaum;

• Expansion of the substation within the Lomaum Hydroelectric Plant;

• A 6.3km 220kV OHTL connecting the new Lomaum substation and the expanded Lomaum Hydroelectric Plant substation; and

• 7.7km 220kV OHTL connection between the new Lomaum substation and the transmission line running from the Biópio Hydroelectric Plant.

The review was carried out in collaboration with Crédit Agricole Corporate and Investment Bank (CACIB).

2. Project Sector

The Project is in the power sector

3. Project Buyer

The Project is being developed by the Ministry of Energy and Water, Angola.

4. Applicant

Consorcio IQA-Elecnor - an unincorporated consortium of Elecnor Servicios y Proyectos SAU and IQA Operations Group Ltd (both members of Elecnor SA, the group parent).

5. Export Credit Agent Bank

CACIB

6. Amount of UK Export Finance Support

The maximum liability of the support is approximately £118.1 million.

7. OECD Common Approaches and Equator Principles

UK Export Finance categorised the Project as Category A, i.e. having potentially significant environmental, social and human rights (ESHR) impacts in accordance with the definition in the Organisation for Economic Co-Operation and Development (OECD) Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (“Common Approaches”), OECD/LEGAL/0393 and the Equator Principles (2020).

As required by the OECD Common Approaches, UK Export Finance disclosed its possible involvement in the Project. A notification was posted on the UK Export Finance web site on 4 October 2023, which directed interested parties to the contact from where published ESHR information can be sourced. UK Export Finance did not receive any comments from interested parties.

Environmental Resources Management Iberia, S.A. (ERM) was commissioned by Elecnor to undertake an independent environmental and social due diligence review on behalf of UKEF and CACIB.

8. Environmental, Social and Human Rights Standards

Project related ESHR documentation was reviewed for their alignment against the 2012 International Finance Corporation (IFC) Performance Standards (PS) on Environmental and Social Sustainability and the World Bank Group Environmental, Health and Safety (EHS) Guidelines.

The applicable IFC PS were:

• PS1: Assessment and Management of Environmental and Social Risks and Impacts;
• PS2: Labour and Working Conditions;
• PS3: Resource Efficiency and Pollution Prevention;
• PS4: Community Health, Safety and Security;
• PS5: Land Acquisition and Involuntary Resettlement;
• PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources; and
• PS8: Cultural Heritage;

The applicable World Bank Group EHS Guidelines were:

• General EHS Guidelines (2007);
• EHS Guidelines for Overhead Transmission Lines (2007).

9. Nature of ESHR Impacts

The review of potential ESHR risks and impacts took into account the following impacts, receptors and issues during the construction and operational phases of the Project:

• Demining;
• Land acquisition and economic displacement;
• Biodiversity and natural habitat;
• Occupational health and safety;
• Community health, safety and security;
• Waste management;
• Emergency planning and response;
• Worker and community grievance mechanisms;
• Worker conditions of contract; and
• Community engagement.

10. Assessment of ESHR Impacts

A review was undertaken in line with the requirements of the OECD Common Approaches and Equator Principles to identify potential ESHR risks and impacts of the Project and how these would be effectively managed.

ERM, acting as the Independent Environmental and Social Consultant provided support in undertaking the review.

The review included:

• A site visit to targeted areas of the alignment;
• Desk-based review of project-related documentation: Environmental and Social Impact Assessment, Environmental and Social Management Plans, and Stakeholder Engagement Plan; and
• Follow-up meetings and interviews with relevant Project representatives

The results of this review formed the basis for the evaluation of the Project’s alignment with relevant international standards, and recommendations for future compliance and monitoring.

Taking account of the review, the Project was deemed to have potential to cause a number of adverse environmental and social impacts both during construction and operation. However, a proposed suite of controls as part of the Project’s environmental and social management systems should facilitate the management of these impacts.

11. Climate Change Considerations

UKEF considered the potential direct and indirect greenhouse gas (GHG) emissions of the Project and effects of climate change factors on the Project as part of its ESHR review.

The Project is not considered to be a carbon intensive undertaking (such as fossil fuels or petrochemical) and so “high” GHG emissions in excess of relevant thresholds for quantification and reporting set by international standards were reasonably not envisaged.

The review revealed that the Project design has considered potential physical impacts of climate change such as changes to rainfall and weather patterns.

12. Decision

Various actions have been agreed between the Project developer, operator, and parties involved in the financing, which are necessary to ensure the Project’s on-going alignment with international standards. Following agreement of these commitments, it was concluded that the Project should meet the relevant international standards over the Project cycle. UKEF has therefore decided to provide its support in respect of the supply of goods and services by UK exporters to the Project.

A condition of support is that the Project will be subject to monitoring and reporting in order to provide satisfaction that the Project is aligned with the relevant international standards throughout the duration of support.

UK Export Finance

01/07/2026