Supplementary Loan to Montepuez - Lichinga Road Project


  • Reference: P-MZ-DB0-010
  • Approval date: 26/10/2010
  • Start date: 05/12/2011
  • Appraisal Date: 10/07/2010
  • Status: OngoingOnGo
  • Location: Cabo Delgado and Niassa Provinces


project comprises civil works for:

(i) the upgrading of Montepuez-Ruaca (135 km) and Marrupa-Ruaca (68 km) road sections from gravel to bitumen surfaced standard as Lot A and Lot B respectively;

(ii) the rehabilitation of the Litunde-Lichinga road (66 km) as Part I of Lot C;

(iii) the construction of seven bridges between Marrupa and Litunde as Part II of Lot C;

(iv) consulting services for design review, pre-contract services and supervision of the civil works;

(v) road safety;

(vi) project audit services and (vii) payment of compensation and resettlement of affected persons.


2. Project Objective

Improved accessibility and road transport services for the population in the zone of influence of the Montepuez-Lichinga Corridor


1.1 The Pemba - Montepuez - Lichinga Road Corridor (735km) traverses the two relatively underdeveloped and isolated northern provinces of Niassa and Cabo Delgado which make up the hinterland of Pemba Port. The road corridor is important since it improves connectivity of the two provinces to the national road system; opens up the richest but under-exploited agricultural region of Mozambique for grains and cash crops (tobacco and cotton); and improves social service coverage to the population in its remote rural communities.

1.2 The project faced considerable delays during the early stages mainly due to delays in satisfying conditions for effectiveness, particularly the implementation of the Resettlement Action Plan (RAP). Bidders for the civil works of Lot A and Lot C submitted their offers in June 2009, i.e. three (3) years after project Appraisal. During this period international oil, and hence construction materials, prices witnessed a sharp increase. This led to a large difference (of about 80%) between the project total cost as estimated during Appraisal and the submitted offers. The financing gap amounted to about UA 57.80 million for the whole project. As a result, the GOM requested the Bank in March 2010 to consider providing a supplementary loan to bridge the resulting financing gap. In response to the GOM's request, the Bank mounted a re-appraisal mission during the period 27 July-13 August 2010 with a view to securing a supplementary loan to cover the project cost-overrun. This memorandum is based on the findings of the mission.


2.1.1 Objectives: The upgrading of the Pemba-Lichinga Corridor has been conceived within the frame work of the Sector Wide Approach used in the design of the ROADS-3 Programme and fits within Government's road sub-sector policy and strategic framework of providing adequate and efficient transport infrastructure and services capable of servicing the economy and in particular to connect all nations' provinces, provincial capitals and the main international corridors; and to stimulate economic development by providing access to national and international markets.

2.1.2 The Montepuez-Lichinga Road which is a vital link in the corridor has in this context been accorded high priority in the ROADS-3 programme as a necessary investment in the northern provinces of Cabo Delgado and Niassa. The road will provide the communities in the zone of influence access to socio-economic services and markets in the major towns of Montepuez, Balama, Marrupa and Lichinga. Also, the lack of adequate transport links is hampering this potential I shampering the huge tourism potential of the Delgado and Niassa provinces. The project when completed will compliment the Pemba-Montepuez road (an earlier Bank's intervention in the corridor) and the Litunde - Marrupa link completed with financing from SIDA.

2.1.3 The Pemba-Lichinga Corridor under the national road classification system represents part of the primary road network. The section between Montepuez and Marrupa is a track and can only be used by four wheel vehicles, which makes the entire area inaccessible by light vehicles. The Lichinga-Litunde section is an existing surfaced road of sub-standard geometric cross-section serving beyond its design life with the pavement showing signs of distress and in need of rehabilitation.

2.1.4 The section between Litunde and Marrupa covering 247 km has been upgraded to bitumen standard of 7 m overall width without shoulders with funding from SIDA. To reduce the investment costs, low level drainage structures were provided over the major watercourses. During the rain season these structures are overtopped by flood waters and are a danger to traffic and pedestrians. There is need to provide high level bridges for the road to be open all year round.

2.1.5 The original project objectives were to upgrade to bitumen standard, the Montepuez-Ruaca road (135 km); rehabilitate the Litunde-Lichinga road (66 km); construction of seven (7) bridges between Marrupa and Litunde and the upgrading of the Marrupa-Ruaca road (68 km) and improve road safety. The project is designed to improve connectivity of the national road corridors of Mozambique, increase access to markets and social services, create off-farm employment, and increased availability of agricultural inputs at lower cost and increased farm gate prices of produce with a purpose of improving the income levels of the rural communities, thereby contributing to the reduction of poverty.

Key contacts

ALI Aymen Ahmed Osman - OITC2


Finance source Amount
ADFUAC 32,650,000
DeltaUAC 25,160,000
TotalUAC 57,810,000