The funding required to modernise Maputo international airport was secured Thursday through a 20 million-euro loan provided by the European Investment Bank (EIB), Mozambican daily newspaper Notícias reported.

The subsidised loan, the contract for which was signed Thursday, will be used to repave the main runway, roads and the airport apron as well as to repair the landing light system and improve water supply in case of fire and facilities for aircraft refuelling.

The 20 million euros (US$27.2 million) provided by the EIB are part of a total of US$70.5 million needed to carry out the scheduled work. The first tranche of the funding was provided in May by the French Development Agency.

Mozambique’s Finance Minister, Manuel Chang, noted that the EIB had provided a number of loans with favourable terms including this latest one with a maturity of 20 years, including a 4-year grace period and an interest rate of 0.99 percent.

The modernisation work is expected to be finished in 2017 and the EIB will provide technical assistance in the planning and construction stages.

Mozambique has received around US$296 million in loans from the EIB for projects in the financial, basic infrastructure, health, energy, telecommunications, transport, tourism and water supply and sanitation sectors. (macauhub/MZ)