Mozambique: Delays in providing funds holds up launch of work at Beira fishing port

6 April 2009

Maputoi, Mozambique, 6 April – The excessive delay in releasing funds by banks is holding up the launch of the refurbishment work on the fishing port of Beira, in Mozambique’s Sofala province, according to Fisheries Minister, Cadmiel Muthemba.

Speaking to Mozambican newspaper Notícias, Muthemba said that the work financed by the Arab Bank for Economic Development of Africa (BADEA) and the Islamic Development Bank (IDB) was already due to have been started, but this had not occurred due to the long delay in releasing funds.

Muthemba said, however, that all the constraints that had led to the setback specifically establishing the real value of the work and other bureaucratic processes that were needed, had already been dealt with.

The initial evaluation carried out by an international consultancy pointed to restoration work on the port costing around US$20 million, but companies that competed for the tender concluded that the cost would be at least US$40 million.

Given this situation, the Government was forced to re-negotiate with donors in order to boost funding.

“What is happening now is that there are a lot of delays in providing the agreed amounts. We even signed a contract to award the work with the contractor, but it cannot start work because it needs the first instalment of the payment,” the minister said.

Despite this situation, Muthemba said that due to the state of the process, work could begin at any moment.

The fishing port of Beira has a strategic importance for the region and the country in general, due to its location in the country’s largest fishing centre. (macauhub)