Mozambique: African Development Bank grants funding of US$93 million

19 November 2008

Maputo, Mozambique, 19 Nov – The African Development Bank (ADB) has granted Mozambique a loan of US$93 million to fund the second programme to support poverty reduction (PARPA II) in the 2008-2010 period, Mozambican newspaper Notícias reported.

The funding agreement was signed in Maputo by the minister for Planning and Development, Aiuba Cuereneia, and the ADB representative to Mozambique, Alice Hamer.

The conditions of the loan, according to Cuereneia, relate to meeting the targets set by the government in partnership with the ADB for the areas of governance, combating corruption and poverty as a whole.

The funds will be provided in three tranches of US$30 million each via the State Budget, with a 20-year repayment period.

According to the ADB representative in Mozambique, the agreed loan is part of the support the institution has been providing to Mozambique’s strategy to reduce poverty, and should be seen in the context of the other projects funded by the bank, to a total value of US$620 million.

The ADB has been working in Mozambique since 1977 and has thus far applied US$1.7 billion to 71 projects in the country. (macauhub).