Mozambique - US$ 20.64 Million Loan For Massingir Dam emergency Rehabilitation

Share |

Tunis, 15 July 2009 – The Board of Directors of the African Development Fund (ADF), the concessionary arm of the African Development Bank (AfDB) Group, on Wednesday in Tunis, approved a US$ 20.6 million loan, equivalent to 13.3 million Units of Account*, to finance the rehabilitation of the Massingir Dam in Mozambique.

The Massingir Dam Emergency Rehabilitation Project aims at ensuring the sustainability of the dam by preventing its total collapse in the event of heavy downpour. It will also improve food production and the living standards of the target group through sustainable improvement of the dam’s operational efficiency. This would, in turn, facilitate the productive capacity of farmers to produce major crops downstream in Chokwe and Xai-Xai, thereby ensuring food security.

The project, to be implemented over a two-year period (2009-2011), comprises the rehabilitation of the bottom outlets of the dam and management that includes consultancy services for the supervision of engineering works.

Anchored on the second pillar of the Bank’s Country Strategy Paper (CSP), the project fits into the Mozambican government’s Proactive Action for the Reduction of Absolute Poverty (PARPA II), which focuses on economic development, governance and human capital development. The project is also in line with the Bank’s Medium-Term Strategy which supports the development of economic infrastructure in its Regional Member Countries (RMCs).

The project’s key performance indicators (KPIs) will include:

  • The gradual increase in the operational efficiency of the dam from 1,600Mm³ to full operating capacity of 2, 884Mm³ by 2011;
  • Increase in irrigated farm holdings from 0.3 ha to 1-2 ha;
  • Increase in active irrigated area downstream from 19,000 ha to 29,000 ha;
  • Increase in agricultural crop production and improved farming practices and farm yields and;
  • Increase smallholders farmers’ net income from the baseline figures of US$ 800 by about 200% by 2014 since farmers can now crop all year round

Direct beneficiaries of the project include an estimated 16,000 farmers located downstream at Xai-Xai and Chokwe Districts; and people living in Massingir village for water supply; 550 fishers operating in the dam; and Procana Sugar Irrigation scheme, a private sector initiative dependent on the efficient operation of the Dam.

The project is estimated at UA 21.44 million and will be financed with the ADF loan which represents 62% of the overall project cost and the Mozambican government’s contribution of UA 8.14 million or 38% of the total cost.

* 1 UA Units of Account) = 1.55223 US$ on 15/07/2009