Washington — The World Bank yesterday approved two credits totaling US$195.6 million for the Government of Mozambique. The credits will assist the Government in improving road sector management and strengthening the capacity of municipal governments to provide quality infrastructure and services.
The US$162.0 million Roads and Bridges Management and Maintenance Program is part of a ten-year program designed to help stimulate growth and contribute to poverty reduction through improved road infrastructure, sector policies and road sector management. The first phase of the program will focus on: · Improving the coverage and condition of roads and bridges; · Strengthening the country's capacity to manage and administer the road sector effectively and transparently, with efficient and sustainable institutional arrangements; · Establishing financing mechanisms to ensure sufficient, timely, stable and secure flow of funds for roads maintenance; and · Improving road transport safety.
The program will also help prevent the spread of AIDS and encourage employment of women in the roads sector.
Improved road transportation will help stimulate the development of markets, and generate growth and reduce poverty by lowering transportation costs. It will also place the country in a critical strategic role as the transport provider for neighboring landlocked countries, while opening external markets for trade.
The US$33.6 million Municipal Development Project, will strengthen the capacity of municipal governments in the areas of management, finance and the provision of infrastructure and services. This will be achieved through: · Legal and Institutional Reform component, which will provide technical assistance to the Ministry of State Administration for the drafting of legal instruments and the preparation of various guidelines needed to establish the legal and policy framework for municipal development and management; · The Municipal Capacity Building component, which will provide in-service training to elected and appointed municipal officials and staff, and members of other organizations that support the municipalities; · Municipal Grants, which will provide municipalities with financial resources to implement high-priority civil works, equipment and consultant services; and · Project Management and Technical Assistance, which will include a Project Coordination Unit and provide assistance to the municipalities taking part in the project.
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Several groups such as households and businesses will benefit from a more accountable, responsive and empowered local government, as well as directly from improvements in urban services and investments and in the urban environment.
The Municipal Development Project and the Roads and Bridges Management and Maintenance Program will be financed by a US$33.6 million and US$162.0 million credit respectively, from the International Development Association, the World Bank's lending arm for the poorest countries. The IDA credit is on standard terms of 40 years maturity, including 10 years grace.
Contact: Nina Vucenik, News Bureau, Office of Media Relations, The World Bank Group. Tel: (202) 458-7321. Fax: (202) 614-1557.
Visit DevNews--the World Bank's daily webzine of news and events--at: http://www.worldbank.org/developmentnews/
