An agreement for a loan to cover 85 percent of the cost of building the Maputo-Catembe bridge in Mozambique is due to be signed this month, Mozambique’s Finance Minister, Manuel Chang, said cited by Mozambican newspaper O País.
“We have already concluded and signed an agreement with China’s ExIm Bank, which will provide 10 percent of the cost of the project, we have agreed funding for 5 percent from the State Budget, and thus we need another 85 percent that is in the final stages of negotiation,” the minister said.
Chang said that the remaining funding needed for construction of the bridge linking the country’s capital to Catembe – the two sides of Maputo bay – would be secured via a commercial loan, without a subsidised interest rate, based on the fact that, “the bridge is expected to generate revenues that will be used to pay off the loan.”
The loan provided by the Export Import Bank of China (ExIm) totalled US$72.5 million, which according to the Mozambican Finance Ministry accounts for 10 percent of the cost of the project.
As well as the bridge itself, the project includes building a road between Maputo and Ponta do Ouro, on the border with South Africa, as well as other facilities. (macauhub)