African Development Bank approves loans to Mozambique and Malawi

26 June 2009

Tunis, Tunisia, 26 June – The African Development Bank (ADB) Wednesday approved two loans in the amount of US$181 million to Mozambique and Malawi to finance construction of the first phase of the Nacala Road Corridor, linking the two countries to Zambia.

In a statement issued in Tunis, the bank said that the US$158.85 million loan to Mozambqiue and the US$22.15 million loan to Malawi were to finance a section of road, designed for Malawi, Zambia and teh Mozambican interior to have better access to the port of Nacala.

The Nacala Road Corridor project includes 1,033 kilometres of road and two joint border posts between Mozambique and Malawi and Malawi and Zambia.

The first phase includes 361 kilometres or 35 percent of the total in Mozambique and Malawi , phase two involves 360 kilometres or 34.9 percent in Malawi and Zambia and phase three 312 kilometres or 30.1 percent of the total in Mozambique and Malawi and the two joint border posts.

The Nacala Road Corridor is one of the priority projects for the Southern African Development Community (SADC) and is consistent with the New Partnership for the Development of Africa and the bank’s strategy to support regional infrastructure projects that remove barriers to circulation of people and goods and support regional cooperation and integration.

The cost of the first phase is estimated at US302 million and the Japanese International Cooperation Agency (JICA) and South Korea’s Eximbank will provide funding for its construction in Mozambique with US$63 million and US$21 million, respectively. (macauhub)