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

Southern Africa
Grant Amount
EUR 10,800,000 + EUR 2,900,000
Total project cost
EUR 250,000,000
PFG Lead Financier

The 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 commenced in September 2013 and were completed in December 2018. The defects liability period covers 12 months after the completion of the works. Completion of the Lot 1 is therefore currently expected in December 2019.

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.