Mozambique - Massingir Dam and Smallholder Agricultural Rehabilitation Project Supplementary Loan

The present project is a supplementary loan to fill the financing gap and provide adequate resources for the implementation of the Massingir Dam Emergency Rehabilitation Project (MDERP). MDERP was appraised in March 2009 as a response to an emergency when the Massingir Dam’s bottom outlets collapsed resulting in the release of an uncontrollable outflow of Water. It is therefore an autonomous operation justified by the need to prevent a disaster in case of severe flood, a phenomenon common in Mozambique. The project implementation commenced in 2010 with the launching of the tender process for the repair of the bottom outlets, but the process proved unsuccessful as it resulted in extremely variable bids (very high and very low). The only substantive bid exceeded the project’s available funds by about USD 37 million. This support aims to complement the resources provided by the ADB loan for the effective implementation of the MDERP. The supplementary Loan not exceeding UA 22.01 million comprises of UA 18.13 million from ADF 12 resources and UA 3.88 million from cancelled resources resulting from closed projects be extended to the Government of Mozambique. It consists of two main components: I) Rehabilitation of the Massingir Dam Bottom Outlet; and II) Project Management, included the Consultancy Services for the supervision of the works.