AfDB Board Approves U.S.$73.64 Million for Nacala Road Project

4 December 2013
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African Development Bank (Abidjan)
press release

The Board of Directors of the African Development Bank Group on Tuesday, December 3, approved US $73.64 million for Phase IV of the Nacala Road Corridor Development Project in Malawi, Zambia and Mozambique. The project involves rehabilitation of a 75-kilometre road between Liwonde and Mangochi in Malawi along the Nacala Road Corridor as well as establish of One-Stop-Boarder-Posts (OSBPs) between Malawi and Mozambique and between Malawi and Zambia.

At regional level, the project aims to improve road transportation and trade facilitation along the Nacala Road Corridor, which stretches from Lusaka in Zambia and through Malawi to the port of Nacala in Mozambique. At national levels, specifically in Malawi where a 75-km road is planned to be rehabilitated between the towns of Liwonde and Mangochi, the project is expected to contribute to improving transport services in the Balaka-Mangochi districts as a result of reductions in transportation, which in turn is expected to support stimulation of local economic activities in agriculture, agro-forestry, fisheries and tourism.

The project target area is the entire Nacala Road Corridor starting from Lusaka in Zambia through Malawi and Mozambique to the Nacala Port with an estimated population of over 2 million people. In Malawi in particular, where a 75-km road is planned to be constructed between Liwonde and Mangochi as well as spot-improvement of about 100 km of feeder roads, the target area is Balaka and Mangochi districts which have a combined population of approximately 1,266, 000 comprising 70 per cent youth. The proposed road to be rehabilitated and spot-improvement of feeder roads in this area, is expected to create about 400 temporary direct jobs and 100 permanent jobs during project implementation and after project completion, respectively. In addition to the above, roadside markets will be constructed at selected locations along the road and will provide business opportunities for women as they make the majority of people selling in markets. It is expected that, the above social-inclusiveness activities shall contribute to improved incomes and therefore poverty reduction of the households living in the Balaka-Mangochi districts.

The total project cost estimate for Malawi is UA 45.390 million* net of taxes. The Bank is expected to contribute UA 42.970 million (95 per cent), and the Government of Malawi will contribute UA 2.420 million (five per cent). Bank financing comprises an African Development Fund (ADF) loan in the sum of UA 42.360 million and an ADF grant of UA 0.610 million. The total project cost estimate for Zambia side is UA 5.500 million net of taxes. The Bank is expected to contribute an UA 5.00 million (91 per cent) and the Government of Zambia will contribute UA 0.5 million (nine per cent).

The project is scheduled for completion in five years.

* As of December 2013, 1 UA (Unit of Account) = US $1.53521

Read the original article on African Development Bank (AfDB).

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