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Viewing cable 08LUANDA854, IT'S NOT JUST LUANDA: DEVELOPMENT IN THE PROVINCES

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Reference ID Created Released Classification Origin
08LUANDA854 2008-10-29 16:34 2011-08-25 00:00 UNCLASSIFIED Embassy Luanda
P 291634Z OCT 08
FM AMEMBASSY LUANDA
TO SECSTATE WASHDC PRIORITY 5133
INFO SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
UNCLAS LUANDA 000854 
 
 
E.O. 12958: N/A 
TAGS: PGOV KPAO PHUM AO
 
SUBJECT: IT'S NOT JUST LUANDA: DEVELOPMENT IN THE PROVINCES 
 
Refs: A) Luanda 774 B) Luanda 828 
 
 
1. Summary.  A recent series of Embassy visits to the interior of 
Angola show that the reconstruction and growth so prominent in the 
capital are evident in other parts of the country as well.  The 
cities of Lobito and Benguela are experiencing significant building 
booms, with an emphasis on major infrastructure projects.  Chinese 
and Portuguese firms are key players.  End Summary. 
 
2. Ref A reports on the Ambassador's recent visit to Huila and 
Namibe, two provinces experiencing rapid growth.  A recent visit by 
DCM and an Embassy team to the two coastal cities of Lobito and 
Benguela, in support of a U.S. Navy ship visit, reflect a similar 
dynamism there, with a particular emphasis on infrastructural 
projects. 
 
3. The city of Lobito, with an excellent natural harbor, was founded 
in the early 20th century as an outlet for the Benguela Railway, 
which joined the copperbelt of interior southern Africa with the 
sea.  Angola's long civil war broke that link and severely damaged 
much of the infrastructure on which the region's economy was built. 
Now, Lobito and Benguela are reestablishing those ties and building 
on their location near significant offshore oil/gas fields. 
 
4. The Director of Lobito Port told DCM that the port itself was 
undergoing significant improvement, and pointed out a series of 
construction sites at the dockside.  A key would be the reopening of 
the Benguela Railway, which the Director believed would be completed 
within 18 months.  The port also hoped to serve the capital, where 
the Port of Luanda suffers significant delays due to overstretched 
capacity.  Recent improvements in the road between the capital and 
Lobito have cut transit times in half - to about six hours - and 
made the port increasingly viable as a hub for Luanda.  (Note: The 
Embassy is currently investigating the possibility of using this 
port for HHE shipments.) 
 
5. Other infrastructural projects are underway.  Work on 
reconstructing the railway to DRC is proceeding.  The highway 
between Lobito and Benguela follows the rail line, and orderly camps 
for Chinese railway workers dot the road.  The next step is 
completion of the Lobito - Huambo leg.  A Portuguese construction 
firm is building a sizable new bridge over the river that separates 
Lobito and Benguela, and the large construction site has traffic 
between Lobito and Benguela completely snarled.  The Mayor of Lobito 
told DCM that work has begun on the rehabilitation of a military 
airfield for use as a new civilian airport.  A rep from Esso spoke 
about his firm's plans to capture natural gas from its offshore oil 
production platforms to supply the proposed LNG plant in Soyo; oil 
and gas firms operate out of Lobito to service offshore fields. 
Ref B discussed state oil company Sonangol's plans for a new 
refinery in Lobito. 
 
6. The economy of both towns is heating up.  While still relatively 
quiet, and quaint, provincial towns by Luanda standards, Lobito and 
Benguela are rapidly rebuilding.  Long-time residents have 
complained of increased traffic and increases in housing prices. 
The Portuguese head of Lobito's cement factory told DCM he was 
getting "60 calls a day" from builders frantic for materials; the 
company is building a second cement factory in the area.  DCM 
visited the new Lobito campus of Universidad Catolica, Angola's 
premier private institution, which has recently expanded into the 
Lobito area. 
 
7. Comment.  Angola remains a difficult place to do business, and 
the vast majority of its people are crushingly poor.  Nonetheless, 
revenues generated by oil and diamonds are reconstructing the 
country, and foreign firms are profiting by it.  Based on what we 
saw in Lobito and Benguela, this is true not only in Angola's 
bustling capital, but in the provinces as well.  End comment. 
 
MOZENA