This Project involves the reconfiguration, restructuring and rehabilitation of a 360km road with five bridges running through Zambia to the border with Malawi. The road is also part of the regional Nacala corridor, a regional transport corridor linking Malawi and Zambia to the deepwater port of Nacala in Mozambique. The project is co-financed between the EC, AfDB, EIB and AFD. The EU/AFD/EIB funded works all commenced in September 2013 and are expected to be finalised by end September 2017.
The EUR 25m IRS EU-AITF grant to EIB will be used to decrease the interest rate of its EUR 80m loan to respect the HIPC constraints. The loan agreement with the Republic of Zambia was signed in December 2011 and a first disbursement was made November 2014.