The African Development Fund (ADF), the concessional window of the African Development Bank (AfDB) Group, has approved a UA 63.369-million (USD 95.6 million) loan to fund the Nacala Corridor Phase II Road project (NCRP) in Zambia
The NCRP aims at promoting economic growth and regional integration within the Southern African Development Community (SADC) through a reliable and efficient transport infrastructure to improve sub-regional trade and the region’s overall competitiveness.
The NCRP covers approximately 1,033km of roads in Zambia, Malawi and Mozambique and two border posts.
The project involves three phases. Phase I includes 348km of roads in Mozambique, and a 13km bypass road in Malawi. Phase II is an additional continuation of Phase I, and involves 360km of road in Zambia between Luangwa and Mwami. The project includes subsidiary work to improve and asphalt 114.7km to a good standard.
The project is expected to reduced transport costs; improved access to markets and social services, and better road safety.
The work will enhance poverty reduction efforts in Zambia and will promote the empowerment of women and other disadvantaged groups through better socioeconomic infrastructure along the road.
The development of the Nacala Corridor will boost export volumes from Zambia through the port of Nacala and expand markets beyond national boundaries, which is crucial for continued economic growth in the sub-region.
The total project costs amounts to UA 69.47 million (USD 104 million). The Zambian government is strongly committed to the implementation of Phase II in its entirety, and is seeking alternative funding for the remaining 82.5km (23%).
Preparations are underway for Phase III, which will include repairs and improvements in Malawi and Mozambique together with the construction of two border posts between Zambia and Malawi, and between Malawi and Mozambique, respectively.
The Bank is the executing agency of the Programme for Infrastructure Development in Africa (PIDA). PIDA is a joint initiative of the African Union Commission (AUC), the New Partnership for Africa’s Development (NEPAD) Secretariat and the AfDB Group.
It was launched on July 24, 2010 in Kampala, Uganda, on the sidelines of the 15th African Union heads of state and government summit.
ZANIS
Just how many loans has our government obtained,,,you dont get loans like this please,by the time Lupiya Vasco da Banda leaves,Zambia will be in so much debt its frightening.Takwabafye eko basenda inkongole ifi sure.Come to think of it,this $96million can be made easily by taxing the mines
This is a good move for enhancing regional economic integration and boosting trade. This will also boost exports and boost economic activities.
Here is an idea. Tax the mines and forget the loans you dumb farts!
More loans for election campains!!!
Considering our geographical location, any project to open up direct access to our many neighbours is a good one. The route thru Angola must also be realized. Mpulungu port is another neglected project which can open up shipping lines into the great lakes region & beyond.
According to our assessment of Zambia, it has a debt sustainability capability of US$5billion so there is room for debt. The critical question is what the debt is utilised for. Infrastructure no problem since it is wealth building and we shall provide the funds, consumption no funding since you guys had a bumper maize harvest and we know that RB will continue to deliver in that area.