China Eximbank provides loan for 160 km Mnivata-Newala-Masasi Road Project

Project narrative

On June 21, 2023, Tanzania National Roads Agency (TANROADS) and China Wu Yi Co., Ltd. signed an RMB 510 million commercial (EPC) contract for Lot 1 (the 100 km Mnivata-Mitesa Section) of the 160 km Mnivata-Newala-Masasi Road Project. China Eximbank subsequently issued an overseas project contracting loan to China Wu Yi Co., Ltd. to support the implementation of Lot 1, while the African Development Bank issued a loan to the Government of Tanzania to support the implementation of Lot 1 and Lot 2 (the 60 km Mitesa-Masasi Section, including Construction of Mwiti Bridge) on November 24, 2021. The Mnivata-Newala-Masasi road is located in the southern part of Tanzania in Mtwara region. The project is aimed at enhancing the accessibility of the 816 km long Mtwara Development Corridor (MDC) commencing from Mtwara to Mnivata up to Mbamba Bay on Lake Nyasa. The purpose of the project is to upgrade the 160 km road from Mnivata to Masasi via Newala to bituminous standard, including 84 meter Mwiti Bridge and complementary initiatives such as the provision of water supply scheme, boreholes, expansion of education infrastructure, agro-processing units for cashew nuts, augmentation of medical infrastructure, and economic empowerment of women and youth through entrepreneurial training. Supervisory services, audits, environmental and social monitoring are also part of the project components. Direct project beneficiaries were originally expected to include farmers, exporters, importers, small scale cross border traders and businesses along the corridor which are expected to take advantage of improved business environment, reduced logistics costs and reliable travel times on the Corridor. Overall, the road project was expected to improve mobility and accessibility to the population along the project road in Mtwara, Tandahimba, Newala and Masasi Districts, estimated at over 1.1 million people. Civil works contracts for Lot 1 and Lot 2 were signed on June 21, 2023. Advance payment was paid for both lots. The contractors then began a three month mobilization phase. Procurement for supervision services was originally expected to be finalized by mid-December 2023. The project implementation period was originally expected to run from 2022 to 2026.