OREANDA-NEWS. January 19, 2015. Angola will build a multi-million dollar electricity generation plant in its north western city of Soyo, as it seeks to boost the country’s energy sector. The project will be undertaken by Chinese construction and engineering company, China Machinery Engineering Corporation (CMEC).

The Southern African country will expend USD 982 million on Soyo combined-cycle plant.

Angola targets 2017

“CMEC will begin construction of a power plant in Soyo, after receiving the first instalment of USD 147.7 million from the Strategic Financial Oil Reserve for Basic Infrastructure,” said a statement from Angola president’s office.

The statement adds that the power plant, which is part of the Public Investment Programme, is of great importance to boost socio-economic development of the country. It is also included in the government project to reduce the Angolan energy deficit by 2017.

The government said it will be built based on growth forecasts for electricity demand in the country, in the medium and long term.

Angolans suffer frequent daily blackouts. In 2002, about 34.5 percent of Angola’s electricity generation came from fossil fuels while 65.5 percent from hydropower. In 2012, days before the election, the government announced USD 17 billion in planned energy investment, designed to alleviate the energy deficit.

Demand for electricity supply has grown in Angola, as in most parts of Africa. Hence, with better electricity supply, Angola is expected to see one of the highest growth rates in Africa, supported by investments in its vast oil fields.