As I understand it, a copy of Luanda spawns when you get this quest, in one of several different places in Varanas Lower City East. You can talk to Hollos to get a hint of where he can be found, but it is a very generic hint.
That is how it is supposed to work. What I have determined is that there is a bug causing Luanda to fail to spawn. That, or he despawns after a certain time limit.
EDIT: I did finally find him, lying on the cobblestones at 40.2, 25.4 (right in front of Rose). But this was after I abandoned a re-acquired the quest, and ran straight to LCE and searched everywhere, then found him only just as I had given up.