South Korea grants loan to Mozambique for development projects

17 October 2011

Maputo, Mozambique, 17 Oct – South Korea’s Export-Import Bank has signed a financing agreement of US$60 million with the Mozambican government for construction of three solar power plants in Niassa province, according to the Mozambican press.

Signed Thursday by the Mozambican finance minister, Manuel Chang and by the vice president of the South Korea ExIm Bank, Sang Wan Byun, the funding is split into US$35 million for construction of the solar plants in three districts of the northern province and US$25 million for setting up an emergency information management system.

The Emergency Information Management System aims to develop an integrated communication system to protect life and public health of citizens and it will be implemented jointly by the police and the national rescue and medical emergency services.

The loan provided to Mozambique by the South Korea ExIm Bank has a maturity of 40 years, a non payback period of 15 years and an interest rate of 0.01 percent.

Mozambique and South Korea have had diplomatic ties since 1993 and in 2010, for example, the two countries signed three credit agreements worth a total of US$114.1 million to finance a hospital in Quelimane, asphalt the Nampula/Cuamba road and for rural electrification in Gaza province. (macauhub)