Mozambique obtains US$150 million from international donors for road program

12 June 2006

Maputo, Mozambique, 12 June – Mozambique has been granted US$150 million by international donors to finance the new phase of its Integrated Road Plan, which is budgeted at a total of US$1.14 billion, officials said.

The program, which is expected to begin in the middle of next year and finish in 2011, will be financed with US$628 million by the Mozambican state budget and US$250 million from the International Development Association of the World Bank, which will analyze the project in November.

The US$150 million now donated is below the amount required to complete financing of the project and forces the government to find new sources of funding, or make cuts to the original program.

According to Mozambican daily Notícias, the commitment by international donors was made last week, after a three-day meeting.

The director-general of Mozambique’s National Road Administration, Abdul Remane, said that the funding would be used to rebuild National Road 1, and particularly the stretches between Jardim/Benfica (7 kilometers), Xai-Xai-Zandamela (97 kilometers) and Massinga-Nhachengue (57 kilometers).

The Vilankulo-Rio Save stretch will undergo maintenance work, as will some of the main regional roads, Remane said.

The funds will be managed by a common fund, rather than project by project, in order to make its application and supervision more efficient.

Mozambique is currently concluding its 2002-2006 Road Plan, the execution fo which was assessed positively by the international community at the end of last year. (macauhub)