Mozambique - Supplementary Loan to Montepuez - Lichinga Road Project

This additional loan was initiated to fill the funding gap in the implementation of the Montepuez-Lichinga road project. Indeed, the project design was intended to improve the connectivity of Mozambique's national road corridors, increase access to markets and social services, create off-farm employment, increase the availability of cheap agricultural inputs and to raise farm-side prices for agricultural products, which would help increase the incomes of rural communities and strengthen the fight against poverty. The total revised project cost is estimated at UA 130 million (including contingencies), compared to an initial estimated cost of UA 72.19 million, a funding gap of UA 57.81 million. The project includes civil works, namely: (i) the reconstruction of the Montepuez-Ruaca (135 km) and Marrupa-Ruaca (68 km) sections, by changing the gravel coating to asphalt pavement, according to standard and this, under lots A and B, respectively; (ii) the rehabilitation of the Litunde-Lichinga section (66 km) as part of the first part of Lot C; (iii) the construction of seven bridges between Marrupa and Litunde, the second part of Lot C; (iv) procurement of consultancy services for design review, provision of pre-market services and supervision of all civil works; (v) road safety; vi) the audit of the project; and (vii) payment of compensation and resettlement of affected persons.