South Korea loans Mozambique US$124 million

27 May 2014

The South Korea Export-Import Bank has provided Mozambique with two loans worth US$124 million to build a road and landfill sites, Mozambican daily newspaper Notícias reported.

According to the newspaper, the two loan agreements include one for US$75.441 million for construction of National Road Number 104 (EN104), which links Nampula and Nametil, in Nampula province and another for US$48.621 million for construction of landfill sites in Maputo and Matola.

The two loans have a maturity of 40 years, including a 15-year grace period and an interest rate of 0.01 percent.

The project to build EN104 covers a distance of 74 kilometres between the city of Nampula and the town of Namitil, which will now be paved. It is expected to improve conditions of travel for the population as well as for goods to and from the neighbouring districts of Angoche and Moma, which are potential producers of agricultural goods, heavy sands and titanium.

The landfill project involves building a modern facility to process solid urban waste that will serve the cities of Maputo and Matola, with an estimated capacity of 1,400 tons per day.

Yim Seong-Hyeog, vice president of the South Korea Export-Import Bank said as the loan agreements were signed that the first project funded by South Korea in Mozambique was construction of the Quelimane Central Hospital in 2008 and that so far South Korea had provided Mozambique with subsidised loans totalling US$318 million for eight projects. (macauhub/MZ)