African Development Fund approves supplementary loan to Mozambique

6 March 2007

Dakar, Senegal, 6 March – the African Development Fund, of the African Development Bank, has approved a supplementary loan for Mozambique of US$25.58 million to finance the Massingir dam and an agricultural rehabilitation project for smallholders, officials said.

The aim of the rehabilitation project is to improve the operating efficiency of the Massingir dam in order to make it possible to irrigate the land of smallholder farmers and thus produce higher crop yields in order to improve quality of life.

The aim is also to refurbish and rebuild the Xai-Xai irrigation system to the north of Maputo.

A loan totalingUS$55 million was approved in 1993 for the rehabilitation and conclusion of the Massingir dam and the irrigation system downstream of the dam.

The African Development Fund finances 90 percent of the project while the Mozambican government will contribute the remaining 10 percent. (macauhub)

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