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 now expected to be finalised by August 2019.
The EUR 24.38m 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 the first disbursement was made in November 2014 (EUR 658,236.75). As of December 2018, there is still an unused balance amounting to EUR 23.72m.