Maputo, Mozambique, 10 July – The World Bank Monday granted Mozambique a loan of US$100 million for the second stage of management and maintenance of roads in Mozambique, in the 2007-2011 period, known as the Integrated Program for the Road Sector.
An agreement was signed for this purpose in Maputo between the representative of the World Bank, Michael Baxter, and Mozambique’s Planning and Development Minister, Aiuba Cuereneia.
The memorandum outlines that the Mozambican government pay back the debt at 0.35 percent interest charge, as well as a service charge of 0.75 percent over 40 years.
The funding is part of the US$1 million that the government has said it needs to rebuild the main roads from the south to the north of Mozambique.
The project to manage and maintain the country’s roads and bridges, includes five key components, namely improving road and bridge surfaces and conditions and boosting the government’s capacity to manage and administrate the transport sector.
Others are establishing the financing mechanism for maintaining the roads, the continual promotion of use of local resources in building and managing roads and improving road transport safety. (macauhub)