Mtwara Development Corridor
- Reference: P-Z1-D00-021
- Approval date: 29/10/2012
- Start date: 19/05/2015
- Appraisal Date: 15/07/2012
- Status: OngoingOnGo
- Implementing Agency: GOVERNEMENT OF MOZAMBIQUE (MULTINATIONAL)
- Location: MOZAMBIQUE-TANZANIA
2DESCRIPTION OF THE STUDIES
2.1 Overall Scope and Components
2.1.1 The study will be carried out in three components, comprising project preparatory activities as follows: "Component 1: Feasibility Study - To be carried out in two stages, firstly a Feasibility Analysis to confirm the viability of the project and recommend a preferred route, and secondly a Preliminary Engineering Design for the preferred route. The second stage of Phase 1 will only commence on the written authorization of the Government and no objection from the Bank, which will be contingent upon the confirmation of the viability of the project and the adoption of a preferred route; "Component 2: Trade Facilitation - As part of the overall feasibility study phase, an assessment of the existing trade facilitation institutions and measures across the border with Tanzania shall be undertaken. The objective shall be to generate recommendations, both soft and hard on how border transactions can be streamlined to improve efficiency for transit traffic. This shall include assessment of the feasibility and viability of designing a One Stop Border Post (OSBP) with modern facilities; "Component 3: Detailed Design: The preparation of the detailed design, bidding documents, environmental impact assessment and economic analysis for the road project using the preferred alignment adopted as a result of the studies carried out in Phase 1. The design work shall include, (if approved under the trade facilitation component), appropriate OSBP facility. Approval of the finance for construction works and consequent progression to Phase 3 will be contingent upon successful appraisal and approval of the project by the Government and no objection from the Bank; "Component 4: Pre-contract Services: Assistance to the client (ANE) as an agency of the Government of Mozambique in the works prequalification, bidding evaluation and contract preparation stages. 1.1.2 The Consultants shall perform all necessary planning, engineering, economic, financial, environmental, gender, and poverty analyses and field investigations. They shall carry out tasks as described in the detailed ToRs (Annex 6) with due care and diligence to attain the objectives of the project.
1.2 Study Objectives
1.2.1 The objective of the studies is to carry out prerequisite project preparation work to bring this regional road link along the Mtwara corridor to a ready state for investment financing. This shall be achieved through: "A full feasibility study for rehabilitation of the 175km Mueda - Negomano road, covering technical, economic, environmental and social issues in order to provide the Government of Mozambique with sufficient information for decision making on the preferred alignment and proposed construction of the road link; "An assessment of trade facilitation activities across the border with Tanzania, with recommendations (soft and hard) for improved operations and efficiency, possibly including recommendations for construction of a One Stop Border Post; "Preparation of detailed designs, cost estimates, tender documents and other pre-contract tasks for the improvement of this international road transport corridor linking Mozambique with the port of Mtwara in Tanzania.
1.3.1 The objectives of the NEPAD-IPPF as set out in its founding documents are "to assist African countries, Regional economic communities (RECs), specialized agencies and related institutions, through grant resources, in:
(i) preparing high quality and viable regional/continental infrastructure projects to be ready to solicit financing from public and private sources,
(ii) developing a consensus and partnership for projects implementation
(iii) promoting infrastructure projects and programme, which would promote regional integration and trade."
1.3.2 The Mtwara Development Corridor is one of SADC 17 priority corridors identified as necessary for development in order to improve transportation and enhance economic growth of the economies of its Member Countries - Tanzania, Malawi, Zambia and Mozambique. The Mueda - Negomano road section in Mozambique lies within the Mtwara Development Corridor and links the Cabo Delgado Province in North Eastern Mozambique to Tanzania through the "Unity Bride" over the Rovuma River along the boundary of the two countries.
1.3.3 Implementation of the rehabilitation of the Mueda -Negomano road is a fundamental contributor to the cooperation and regional integration of these two Member States Mozambique and Tanzania, as it shall provide access to the Indian ocean port Mtwara in southern Tanzania for the northern part of the agriculture and mineral rich Cabo Delgado province of Mozambique, enhancing the quality of transport links within the development corridor which has major mining projects to be developed including coal, iron ore, titanium and vanadium, and potential for hydro-electric generation and development of gas reserves. Deposits of gold, graphite, limestone, marble and uranium have also been reported. Prospecting for these depends on a transport system that can support delivery of the required equipment in remote areas.
1.3.4 In addition, the two countries of Tanzania and Mozambique jointly built a modern bridge over the Rovuma River linking the two countries from their own resources and named it Unity Bridge as a demonstration of the unity of their peoples and the high level of cooperation between their Governments. However, the roads leading to this bridge - which was commissioned in 2010, are unpaved. On the Tanzanian side, the Bank has recently approved the construction of a paved road under the Tanzania Road Sector Support Programme. On the Mozambican side, the Mueda - Negomano road is the missing link, and the Bank has committed to finance its construction early in 2014 under ADF 13.
1.3.5 NEPAD-IPPFs involvement in this regional project takes into account the overall corridor development taking place in the sub-region, which includes on-going studies for upgrading of the Mtwara Port in Southern Tanzania with funding from the Government, with actual works scheduled to commence in 2013/14 possibly through PPP investment by Chinese or other Investors. It also takes into account the ADF financing of the construction of a road on the Tanzanian side linking to the border with Mozambique, being financed through a Road Sector Support Programme for Tanzania.
1.3.6 The feasibility study and detailed engineering design of Mueda - Negomano road therefore responds in all respects to the mandate of the NEPAD-IPPF as demonstrated in its objectives and scope thereby justifying use of resources from the Facility. Considering the importance of the project in advancing regional integration within SADC, it is important that the IPPF plays a significant part in its realization.
Anticipated Economic and Social Benefits
2.3.1 The Mtwara Transport Corridor comprises the Mtwara port on the Indian Ocean and runs westwards through Masasi, Tunduru, Namtumbo, Songea and Mbinga to Mbamba Bay on the shores of Lake Nyasa/Malawi. The corridor crosses Lake Nyasa/Malawi to Nkhata Bay in Malawi and continues through Mzuzu and southwards on the Great North-South Corridor to the border with Zambia. The corridor continues into Zambia and links with the Nacala Corridor at Chipata. A section of the corridor runs southwards from Mangaka to the border with Mozambique over the Unity Bridge to Mueda and links with the Pemba-Montepuez-Lichinga Corridor in northern Mozambique. The zone of influence of the Mtwara port therefore covers large areas of southern Tanzania, northern Mozambique, northern Malawi and eastern Zambia. 2.3.2 Major mining projects to be developed in the Mtwara Development Zone include coal, iron ore, titanium and vanadium mining, hydro-electric generation, development of gas reserves. Deposits of gold, graphite, limestone, marble and uranium have been reported. Prospecting for these depends on a transport system that can support delivery of the required equipment in remote areas. 2.3.3 According to a study undertaken on the corridor, with the existing road system, there is currently cross-border trade between Mozambique, Tanzania, Malawi and Zambia amounting to over U$60 million dominated by agricultural products like maize, sugar, fish and vegetables. Other goods include clothing, soft drinks, beer, vehicle spare parts, cosmetics and electrical and kitchenware. 2.3.4 The economic benefits expected through the implementation of the project therefore include potential for increased trading activity in the Mtwara Development Zone following the improvement of the road system and border processes in the zone of influence. It is also anticipated that the improved road network shall enable increased prospecting in this mineral rich region and potential for export through the Mtwara Port which is also undergoing upgrading by the Tanzania Ports Authority. Improved trade facilitation measures shall result in reduced time and costs for transit traffic thereby boosting trading activities across the border. 2.3.5 Improvement of this road shall also have significant social and regional integration benefits for the residents on both the Tanzanian and Mozambican sides of the border with reduced travel time and better transport access across the Unity Bridge.
CHIRWA Mtchera Johannes - IPPF