EU funds environment, road projects in Mozambique worth euros 115 million

19 July 2006

Brussels, Belgium 19 July – The European Union is to fund development projects in Mozambique worth a total euros 115 million in sectors including water and the environment, agriculture, and road infrastructures, officials have said.

An accord for five projects funded by the European Development Fund (EDF) was formalized Tuesday in Brussels by European Commission President José Manuel Barroso and Mozambican President Armando Guebuza.

A water-supply project for Maputo , valued at euros 76 million, is the most prominent of the projects and designed to increase coverage of this basic amenity to 73 percent of areas in the capital in the coming four years.

The EDF is supporting the initiative with euros 25 million, with France and the Netherlands providing euros 6.6 million each, the European Investment Bank giving a credit of euros 26.9 million and Maputo funding the remaining 11.1 million costs of the projects.

Another 1.5 million from the EDF will fund a study on the rehabilitation of the Milange-Mocuba highway (188 km) linking Maputo to Malawi and Zambia.

The project will also be supported with euros 13.5 million from the National Indicative Program and euros 15 million from the EDF’s program for the Southern African Development Community.

Another accord signed Tuesday envisages support of euros 4.3 million to Mozambique’s farming sector to fund research projects in the sectors of cotton, potatoes and cassava.

Brussels has also granted support of euros 4 million to civil society institutions and euros 1.6 million to water and sanitation projects being implemented by the Aga Khan Foundation.

Mozambique is currently among the five main beneficiaries of the EDF and donations for the period 2008-2013 will reach euros 482 million, nearly double that of the previous program. (macauhub)