Notice

Category B project supported: Support for the purchase of mobile construction equipment, Dints MCA

Published 24 March 2025

1. Project description

UK Export Finance has agreed to support MCA Infrastructures SA, a subsidiary of the wider M.Couto Alves, S.A. (MCA) Group (the “Borrower”), in respect of its purchase of mobile construction equipment from Dints International Ltd (Dints).

The equipment includes, but is not limited to:

• Cars;

• Trucks;

• Vans;

• Trailers;

• Excavators;

• Stackers;

• Diggers, and;

• Generators.

MCA Group acts as engineering, procurement, and construction (EPC) contractor on multiple projects including the existing rural electrification programme in Angola (the “Programme”) where the equipment will initially be deployed before being deployed elsewhere in the region.

The Programme is supported by lender Standard Chartered Bank (SCB) and Export Credit Agency Euler Hermes (EH), but not directly supported/funded by UKEF.

2. Project Sector

The Project is in the civil construction sector.

3. Project sponsors

The equipment is being purchased by the Borrower, MCA Infrastructures SA.

4. UK exporters

Dints International Ltd.

5. Export Credit Agent Bank

AF Capital (Apple Bank).

6. Amount of UK Export Finance Support

The principal value of the support is approximately £11 million.

7. OECD Common Approaches

As the initial locations of use of the mobile equipment are known, UKEF considers its support for the mobile construction equipment to be within the scope of the 2012 (Revised 2024) OECD Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (the “OECD Common Approaches”). UKEF consulted with EH who indicated that the Programme was designated as category B which was considered reasonable and adopted by UKEF.

However, UKEF has no leverage with regard to the way the Programme, or any future project supported by the MCA Group is built or operated. As such, UKEFs diligence efforts are limited in scope and impact.

An Independent Environmental and Social Consultant (IESC) was commissioned by SCB, along with EH, to undertake an independent environmental and social due diligence review of the Programme and subsequent monitoring.

8. Environmental, Social and Human Rights Standards

Project related ESHR documentation was reviewed for parts of the first phase of the Programme for 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;

• PS8: Cultural Heritage.

The applicable World Bank Group EHS Guidelines assessed by the IESC were:

• General EHS Guidelines (2007); and

• EHS Guideline for Electric Power Transmission and Distribution (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:

• Health and safety;

• Emissions to land, air and water;

• Wastewater treatment;

• Waste management;

• Emergency planning and response;

• Workers accommodation;

• Grievance mechanisms;

• Worker conditions of contract; and

• Community engagement.

10. Assessment of ESHR impacts

A review was undertaken, by SCB, EH and their appointed IESC, in line with the requirements of the OECD Common Approaches to identify potential ESHR risks and impacts of the Project and how these would be effectively managed.

The IESCs review included desk-based review of project-related documentation including  impact assessments and management plans.

UKEF consulted with EH regarding their support for the Programme to understand how EH got comfortable with the environmental and social (E&S) risks. The consultation provided comfort to UKEF that the Programme was being adequately assessed and monitored by the parties directly supporting the Programme, which included an environmental and social action plan (ESAP) for the remaining Programme phases and monitoring activities.

Based on this review and consultation, the negative environmental and social impacts and risks were considered to be readily addressed through mitigation measures and management actions.

11. Climate change considerations

Neither the operations of the mobile construction equipment, nor the Programme, is considered carbon intensive and Greenhouse Gas emissions are not expected to exceed relevant thresholds for quantification and reporting set by international standards. The review revealed that the Programme design has considered potential physical impacts of climate change such as changes to rainfall and weather patterns.

12. Decision

Whilst UKEF’s leverage on the destination/underlying Programme is limited, UKEF made reasonable enquiries to determine the context, E&S risk profile and status of the Programme to which the exported equipment is destined.

While the Programme is substantial in scale, UKEF concluded that significant residual unmitigated E&S risks and impacts are unlikely due to the ongoing diligence and monitoring by EH and support from an IESC (including an ESAP).

UKEF has therefore decided to provide its support in respect of the supply of goods and services by a UK Exporter to the Borrower for use on Programme sites without the need for additional actions or conditions as a result of UKEF support for the mobile construction equipment procured.