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IRS for the Rehabilitation of the Great East Road within Nacala Regional Corridor - Zambia Section

Region
Southern Africa
Sector
Transport
Scope
IRS
Grant Amount
EUR 10,800,000 + EUR 2,900,000
Total project cost
EUR 250,000,000
Status
Under disbursement
PFG Lead Financier
AFD

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 2016. 

The original Grant amount of EUR 11m for subsidising AFD’s loan of EUR 49.2m was increased in July 2011 to EUR 13.7m due to the changes in IMF calculations of grant element and to the significant increase of loan rates since both AFD and ITF approvals and the Zambian Government’s request for this major project. The first disbursement took place in April 2014.

06/2016