WITH ANGOLA ON THE THRESHOLD OF PEACE, THE COUNTRY IS LOOKING TO THE PRIVATE SECTOR FOR ESSENTIAL REHABILITATION OF ITS INFRASTRUCTURE NETWORK

FOR MORE than two decades the civil war extensively damaged Angola's infrastructure. While state-owned agencies, private enterprise and foreign aid have helped alleviate the desperate situation for so many Angolans who, for example, lack a regular supply of potable water and dependable utility services, there is still a lot of work to be done.

As infrastructure is the key to any nation's ability to achieve economic stability and respectable living standards, opportunities for forward-thinking investors abound. "In 1998-99, the situation in Angola was far more difficult," recalls Minister for Territorial Administration Fernando Faustino Muteka. "But after a sweeping military offensive, we managed to defeat the bulk of (UNITA rebel leader) Jonas Savimbi's forces.

It enabled the recapture of several locations that were his strongholds. As a result, most of his military power was destroyed, with his fighters forced to flee and scatter into weak units." In some isolated areas, Mr. Muteka acknowledges that small bands of insurgents continue to cause problems for people traveling alone, "but the situation is improving day by day. The real problem is rebuilding. The war destroyed almost every bridge and road repair had been halted for many years," says Mr. Muteka, whose ministry is working closely with provincial administrators to help organize reconstruction and development programs.

Another key player among government agencies involved in repairing and modernizing Angola's tattered infrastructure is the Ministry of Energy and Water, which is headed by Luis Filipe da Silva. According to Mr. da Silva, rebels often targeted hydro-electrical installations as part of their strategy to under-mine the government. As a result, much of the nation remains without a viable energy network. "And to make matters worse," he notes, "we're having a hard time meeting the growing demand for water in the large urban areas while water supply infrastructure in some localities were destroyed.

At the moment we are investing heavily to restore minimum services in the provincial capitals, especially those that have greater industrial development." Mr. da Silva says his government deems private investment in these areas as very important. "The number of investments still to be made is very high, as the state alone will not be able to bear the entire burden," he notes. His ministry has been seeking out partners, especially for areas that are of particular interest to foreign investors, such as mining and petroleum production. "There are some U.S. companies with whom we have maintained contact and several of these have expressed great interest," Mr. da Silva points out.

"Our fundamental priority lies in the development of hydro- electric power, and so far, interest has been shown in the production of thermal energy from natural gas, for which there is not only a local market,but a regional one as well." For water services, Mr. da Silva says his ministry is working closely with the World Bank to help relieve shortages in the capital, whose population has mush-roomed with the arrival of millions of people displaced by the war. "But there is also room for private investment at the local level, for example, in water treatment systems management.

Our country's potential is huge, however a large part of the government's budget goes into rehabilitating what was destroyed. We also need investment so that our economy can grow and improved living conditions of the population can contribute to a greater balance in the world," Mr. da Silva explains.