The World Bank has approved an International Development Association (IDA) credit of 110 million US dollar (660 mio. DKR) to support the development of the Beira Railway in Mozambique.
The Beira Railway project aims to make cost effective and efficient transport available for freight and passenger traffic in the Zambezi Valley and beyond. It will help increase international traffic and improve the operational, managerial and financial sustainability of the railway system.
The project will support the implementation of Governments transport reform program and provide full-service policy advice and instruments to support its implementation. It will also help Mozambique as well as the neighboring countries reach a common understanding for the efficient management of the rail corridors in the region and contribute to accelerated economic growth in the entire sub-region.
– The long-term sustainability of the Beira Rail System in Mozambique will be considerably enhanced under the project because of the involvement of the private sector in the rehabilitation, operation, and management of the system, said Anil Bhandari, the World Bank Task Team Leader for the project.
He added that the project “will lead to improved management and establishment of a more effective system of incentives and accountability.”
The first component of the project – rehabilitation of the Sena Line – will finance part of the expenditures related to the rehabilitation of the Line and its spur lines, totaling 600 kilometers.
The second component – improvement of the Machipanda Line, financed fully by the rail concessionaire, will involve the rehabilitation, maintenance and operation of the Line which represents approximately 300 kilometers.
The last component – institutional strengthening – will provide technical assistance, training and consultant services to the “Portos e Caminhos de Ferro de Moçambique (CFM)” so as to enhance its capacity to oversee the implementation of the project.
The CFM will also be able to engage an independent Engineer to supervise the construction and rehabilitation works, facilitate independent technical and financial audits, conduct transport sector studies, and prepare its long term railway and ports development plans.
The rehabilitation of the Beira Railway system is a critical priority for the Government, which is keen to do so through the involvement of the private sector in both the rehabilitation, operation and management of the system.
Efficient operation of the system is expected to create economic activities through increased production of coal, wood, cotton and other agricultural products in the area and to increase the incomes of inhabitants through higher consumption and investment.
IDA is also supporting a comprehensive road development project and sea ports and airports projects.
In this regard, the Government in Maputo has agreed with IDA to undertake comprehensive studies in the areas of trucking, inland water transport, tertiary ports, ferry crossings, infrastructure facilities for trucks, buses, and taxis, coastal shipping, and multi-modal transport arrangements where applicable.
A comprehensive transport cost study, financed by IDA, to analyze the applicability of all such modes of transport is soon to be launched.
The credit is provided on standard International Development Association (IDA) terms, with a commitment fee of 0,35 percent, a service charge of 0,75 percent over a 40 year period of maturity which includes a 10-year grace period.
For more information on the World Banks work in sub-Saharan Africa visit: www.worldbank.org/afr
For more information on the World Banks work in Mozambique visit: www.worldbank.org/afr/moz
Kilde: www.worldbank.org
