Nacala Road Corridor Project Phase III (Nsipe-Lowonde-Mangochi) Malawi


Overview

  • Reference: P-Z1-DB0-084
  • Appraisal Date: 10/05/2013
  • Board Presentation: 18/09/2013
  • Status: LendingLEND
  • Implementing Agency:
  • Location: Malawi

Description

The project will involve:

(i) rehabilitation of rehabilitation of Nsipe-Liwonde-Magochi road (125km); and

(ii) Construction of two border posts between Malawi and Zambia, and between Malawi and Mozambique.

Project components: (a) civil works; (b) Supervision consultancy services; (c) Road safety; and (d) Compensation and resettlement

Current Status: The Government of Malawi has already undertaken feasibility studies and prepared detailed engineering designs for the selected road sections, namely: Nsipe-Liwonde and Liwonde-Magochi. The design follows the existing alignment; as such acquisition of land is expected to be very minimal.

Project Implementation: The project shall be implemented in two lots (63km length of each). Project preparation to be scheduled in the third quarter of 2013, appraisal in the fourth quarter of 2014 and Board presentation in the first quarter of 2014.

Proposed Financing: Total ADF financing is expected to be UA45 million, consisting UA18 million from the ADF-13 country allocation (PBA) and UA27 million from the regional allocation (RO).


Objectives

The objective to develop road transport infrastructure along the Nacala Corridor is to provide Malawi, and Zambia, and the interior of Mozambique with an improved road transport linkage to the port of Nacala, improve transport services on the corridor, improve accessibility of the communities in the zone of influence to markets and social services and contribute to reduction of poverty.


Rationale

The development and upgrading of the Nacala Road Corridor is one of the Southern African Development Community's (SADC) priority projects included in the NEPAD-STAP programme. In addition, the Malawi Growth and Development Strategy (MGDS-2011 -2016), identifies infrastructure development, in particular transport infrastructure, as one of the pillars for sustainable economic growth and poverty reduction. This is also in line with the Bank's Country Strategic Paper (CSP, 2012-2017). The Government of Malawi has emphasized the need for the future Bank interventions to focus on the Transport Sector


Benefits

Accrued benefits will include: b)Reduction transportation costs in form of vehicles operating costs, and reduced travel times for both freight and passenger transport; c)Stimulate economic activities, especially agglomeration of agro-industry along the corridor; d)Promote social cohesion and regional economic integration between Zambia, Malawi, and Mozambique; and e)Create employment for local communities during construction works and permanent employment because of the labor required for routine maintenance after rehabilitation of the road


Key contacts

MAKASA Davies Bwalya - OITC2


Estimated Cost

Amount
UAC 41,600,000

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