An international consortium led by Sinohydro Angola has been awarded a multi-million-dollar contract to upgrade a critical hydroelectric facility in north-central Angola.
Sinohydro Angola secures contract for Capanda dam rehabilitation project
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China’s Sinohydro Angola has secured a major contract as part of an international consortium to spearhead the Capanda dam rehabilitation. This significant infrastructure project aims to modernise one of Angola’s largest hydroelectric power stations, located on the middle stretch of the Kwanza River in Malanje province.
The Angolan government has authorised nearly US$493 million for the comprehensive upgrade of the 520 MW facility, which has served the nation for decades. The lion’s share of this funding, approximately US$442.21 million, was awarded via simplified contracting to the Electra Consortium, according to a local media report. This group comprises Sinohydro Angola, Dubai-linked Gemcorp Commodities Global, and Mwanza Power.
Technical scope of the Capanda dam rehabilitation
Officials state that this Capanda dam rehabilitation initiative is critical to preventing operational instability caused by ageing equipment. The plan encompasses a wide range of improvements, including the replacement of vital components, ongoing maintenance, and the construction of a new generation operation centre to improve efficiency.
Beyond the primary works, US$16.5 million has been allocated for supervision to the COBA/DAR consortium, while IMBONO has been tasked with technical and financial coordination for US$34.18 million. These combined figures bring the total approved budget to US$492.89 million.
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Capanda remains a cornerstone of the nation’s electricity supply. Its history is deeply rooted in international cooperation, dating back to 1982 when frameworks were established with the former Soviet Union. Previous civil engineering was handled by Brazil’s Odebrecht, with equipment supplied by Technopromexport. Historical estimates suggest that initial costs reached US$1.25 billion by 1987, highlighting the massive scale of the original asset.
The current project will be integrated into the 2026 State Budget and Public Investment Programme. Financing is supported through international credit lines provided by Gemcorp to the Ministry of Finance, meaning the final cost may fluctuate based on interest rates and fees. As the Capanda dam rehabilitation moves forward, it underscores both the plant’s strategic necessity and the enduring economic commitment required to maintain such foundational energy infrastructure.
