ANGOLA: Performance Improvement of EPAL (Empresa Publica de Aguas de Luanda)

Created in 2000, Empresa Publica de Aguas de Luanda (EPAL) is the largest water utility in Luanda, Angola, serving a population of 7 million inhabitants. In Luanda, about 37% of residents are connected to the water network, while about 22% get water from public standpipes. The rest of the population relies on either unregulated and extremely costly private tanker truck service or water drawn from illegal connections or untreated river sources. To address these issues, EPAL’s new master plan contemplates two new water systems Bita and Quilonga Grande to serve the fast-growing outer districts of Greater Luanda. In 2018, PPIAF provided a grant to the Bita Guarantee team to complement the work undertaken by the World Bank to help understand EPAL’s inefficiencies which might be exacerbated once the Bita Water Project is in operation. The PPIAF support consisted of the analysis of EPAL’s current and expected financial and operational condition; Bita financial analysis; preliminary analysis of the Bita Water Project to identify the risks related to the Bita water project for EPAL’s finances and operations. This assessment included an analysis of the 7 EPC contracts already awarded and economic analysis of the Bita water project. Additionally, an independent consultant assisted the Government of Angola and EPAL in reviewing the proposals of commercial financing for the Bita project. This was within the scope of the overall engagement to support the government in mobilizing commercial financing for the project.