The African Development Bank (ADB) grants loan for railroad in Mozambique

railways

 

(2015-12-23) The African Development Bank (ADB) has approved a loan of US$300 million for Brazilian group Vale to support construction of a railroad in Mozambique, the bank said.

The railway, which will be 912 kilometres long, 230 kilometres of which built from scratch, will connect the town of Moatize, in Tete province, in the centre of Mozambique’s coal basin, to the deepwater port of Nacala, Nampula province, passing through Malawi.

This project, which is part of the so-called Nacala Corridor will, according to the ADB, increase the competitiveness of Mozambique’s mineral exports, including coal and facilitate both agricultural and industrial development of the region the railroad passes through.

The ADB pointed out in the statement it continued to support and had already funded a network of roads from Lusaka, in Zambia to Nacala.

“The Bank is proud to partner with Vale and Mitsui (Japanese group with a 15 percent stake in the project) and the other financial institutions to secure the necessary funds for this US$4.5 billion project of 4.5 billion, one of the biggest investments in Africa in recent times,” said the statement issued Monday.

Source: Macauhub

 

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