Multi-Nacala Corridor Project (Mozambique)


Overview

  • Reference: P-Z1-DB0-039
  • Approval date: 10/03/2010
  • Start date: 20/07/2011
  • Appraisal Date: 15/06/2008
  • Status: OngoingOnGo
  • Implementing Agency: NATIONAL ROADS ADMINISTRATION (ANE)
  • Location: MOZAMBIQUE

Description

The Nacala ROad Corridor Project comprises 1,033km of road works and two one-stop Border posts, one between Mozambique and Malawi and the other between Malawi and Zambia. Because of the size of the project, implementation has been phased as follows: Phase I:

(i) Civil works for upgrading of Nampula-Cuamba Road (348km) in Mozambique and the Lilongwe Bypass (13km) in Malawi;

(ii) Design review, pre-contract and supervision of the civil works;

(iii) Road safety;

(iv) Compensation and resettlement; and

(v) Audit services; Phase II:

(i) Civil works for rehabilitation of Luangwa-Chipata-Mwami Border (360 km) in Zambia;

(ii) Design review, pre-contract and supervision of the civil works;

(iii) Road Safety;

(iv) HIV/AIDS, STI, TB mitigation and ESMP implementation monitoring;

(v) Compensation and resettlement; and

(vi) Audit services; Phase III:

(i) Civil works for (a) upgrading the Cuamba-Mandimba Road (160km) in Mozambique; (b) rehabilitation of Mangochi-Liwonde Road (70km) and the Liwonde-Nsipe Road (82km) in Malawi; (c) Construction of two one stop border posts/axle load control facilities - one between Zambia and Malawi and the other between Malawi and Mozambique;

(ii) Design review, pre-contract and supervision of the civil works;

(iii) Road Safety;

(iv) HIV/AIDS, STI, TB mitigation and ESMP implementation monitoring;

(v) Compensation and Resettlement; and

(vi) Audit Services; Phase I was approved by the Bank in June 2009 for a total amount of UA117.02 million to Mozambique and Malawi. Phase II is currently being processed for Board presentation in June 2010. The studies for Phase III are on-going and processing will be reviewed when the studies are complete.


Objectives

The specific objective is to

(i) provide Malawi, Zambia and the interior of Mozambique road transport linkage to the port of Nacala and improve transport services through reduction in transport and delay costs at border crossings

(ii) improve sustainability of investments by controlling axle loads

(iii) improve accessibility of the communities in the zone of influence to markets and social services and contribute to the reduction of poverty.


Rationale

The development and upgrading of the Nacala Road Corridor falls within the Southern African Development Community's (SADC)priority projects which have been included in the NEPAD-STAP programme. Bank's assistance strategy to the RECs in infrastructure emphasizes interventions that promote regional economic and socio-economic integration and those that develop synergy between national and regional interventions taking into account the cross-cutting issues with a view to reducing poverty and sustain growth. NEPAD's strategy evolves around the development of regional infrastructure to foster regional integration and competitiveness to allow economies of scale through development of joint facilities and pooling of resources to overcome the limitations of small markets with the goal of reducing poverty and sustain growth. The NEPAD transport sector interventions among others target trade corridors without borders and barriers to reduce delays and costs at border crossings, inland terminals, road checks especially the corridors serving landlocked countries. A total of seventeen transport corridors mainly running in the east-west direction have been identified by the Region to drive development in their zones of influence. The Nacala Corridor is one of the transport corridors identified to unlock the development potential of the hinterland of Nacala port in Mozambique, Malawi and Zambia. The Nacala Corridor comprises the road sections from the Nacala port at the coast in Mozambique, running westwards through Nampula, Cuamba to Mandimba at the border with Malawi and continues in Malawi through Mangochi, Liwonde Lilongwe and Mchinji at the border with Zambia to Chipata. The corridor continues to Lusaka in Zambia through Sinda, Petande, Nyamba, Kachole and Rufunsa. The entire road section in Mozambique, Malawi and Zambia, is designated as Route 20 of the SADC Regional Trunk Road Network (RTRN). Route 20 continues west up to the border with Angola and and ends at the port at Lobito. The entire Corridor from the Nacala Port to Lusaka covers a distance of over 1700 km.


Benefits

Two types of benefits are relevant to the improved road, namely benefits due to road user costs and maintanance savings. The benefits of user costs is the reduction in vehicle operating costs between the existing and upgraded road. The maintenace cost savings are due to the much lower maintenace costs of the upgraded road compared to the existing track. The travelling public will benefit from a reduction in travel times associated with increased speeds due to the upgrade. Other benefits include increase in comfort, reliability, increase in frequency and accessibility to transport.This will improve movement of persons and goods and ultimately increase economic activity. The corridor will provide development stimulus and foster regional integration and promote competitiveness to allow economies of scale


Key contacts

ALI Aymen Ahmed Osman - OITC2


Costs

Finance source Amount
ADFUAC 102,720,000
ACFAUAC 40,890,000
GovernmentUAC 22,790,000
Co-financierUAC 13,630,000
TotalUAC 180,030,000

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