World Bank grants Mozambique loans totalling US$145 million

24 September 2007

Maputo, Mozambique, 24 Sept – The Mozambican government and the World Bank Friday in Maputo signed six agreements under the terms of which the bank will grant US$145 million in loans for development projects.

The biggest amount is a loan of US$93 million from the International Development Agency (IDA) to finance a project for interlinking Mozambique and Malawi, via power lines.

US$45 million will be spent in Mozambique and US$48 million in Malawi. In Mozambique the work will involve the construction of a 135 kilometer long transmission line and the expansion of a sub-station and in Malawi 75 kilometers of transmission line will be built as well as a new sub-station.

Another of the agreements signed is for a US$15 million loan for a project to supply drinking water by building 370 kilometers of new pipes in the cities of Beira, Quqlimane, Nampula and Pemba.

A further US$15 million for the same drinking water project will be provided by a loan from the Africa Catalyst Growth Fund, which was set up by the world bank in 2006.

The six agreements were signed by the minister for Planning and Development of Mozambique, Aiuba Cuereneia and by the regional director of the World Bank, Michael Baxter. (macauhub)