African Development Bank grants two loans to Mozambique

31 October 2006

Maputo, Mozambique, 31 Oct – The African Development Bank (ADB) is set to grant the Mozambique a US$88 million loan to finance the second stage of the Plan of Action to Reduce Absolute Poverty (PARPA II), officials have said.

The announcement was made at the weekend by the ADB board, which met in Tunis, the capital of Tunisia, and aimed to finance programs to reduce poverty from 54 to 45 percent of the population by 2009.

The ADB loan also aims to boost the management of public finances, as well as supporting reform of the justice system and the private sector.

The Poverty Reduction Support Loan (PRSL) is an operation supported by the ADB Group and other donors and aims to align the political agenda of the Mozambican government, whilst respecting the principles of PARPA II.

The ADB also approved the concession of a second loan in the amount of US$44.4 million to rebuild and maintain the road linking Montepuz, the second most important city in Cabo Delgado province, to Lichinga, the capital of Niassa province.

With this road link, Lichinga can receive its supplies by road, thus reducing the city’s dependence on the irregular rail service between Cuamba and Lichinga.

The ADB Group began operating in Mozambique in 1970 and has so far supplied a total of 1 billion euros in loans for 93 projects.

The ADB, which was founded in 1964, is an institution which promotes social and economic development through loans, investments and technical assistance to African nations. (macauhub)