Project ID: 1240

China Eximbank provided Mozambique $681.6 million buyer's credit loan for Maputo-Katembe Bridge Construction Project (Linked to Project ID #57131)

Commitment amount

$ 694203186.6

Constant 2017 USD

Summary

Funding agency [Type]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Mozambique

Sector

Transport and storage (Code: 210)

Flow type

Export Buyer's Credit

Concessional

Yes

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2012

Implementation

2014

2012-09-20

Planned start

2014-06-06

Actual start

Completion

2018

2018-11-10

Actual

Description

On July 18, 2012, the Government of Mozambique ratified a $681,590,562.91 buyer’s credit loan (BCL) agreement with China Eximbank for the Maputo-Katembe Bridge Construction Project. This BCL, which was finalized after the Government of Portugal failed to fulfill its 2010 commitment to finance the bridge, carried the following terms: a maturity of 20 years, a grace period of 5 years, and an interest rate of 4%. The Government of Mozambique agreed to collect toll revenue to repay the loan. Then, on May 30, 2012, the Government of Mozambique ratified another buyer’s credit loan (BCL) agreement with China Eximbank worth $72,580,000 to provide supplemental funding for the Maputo-Katembe Bridge Construction Project. The terms of this BCL are unknown. Sinosure also provided buyer’s credit insurance for this project. Project ID#1240 captures the BCL worth $681,590,562.91 and Project ID#57131 captures the BCL worth $72,580,000. The Maputo-Katembe Bridge Construction Project involved the construction of a 3 kilometer long and 48 meter high suspension bridge that connects the cities of Maputo and Katembe. It also involved the extension of 129 kilometer road from Katembe to the border town of Ponta do Ouro, and the upgrading of ta 63 kilometer road between Boane and Bela Vista (including bridges over the Maputo, Futi and Umbelúzi rivers). China Road and Bridge Corporation (CRBC) and the Maputo Development Corporation (Maputo-Sul) were the entities responsible for implementation. An official groundbreaking ceremony took place on September 20, 2012. However, construction did not begin in earnest until 2014 and the project encountered several major problems and delays. Maputo-Sul and CRBC employed more than 3,800 local workers and 500 Chinese workers. However, local workers organized protests in 2014 due to poor working conditions and late payments of salaries. The construction of the bridge also required the resettlement of 900 families and stallholders from the Nwankakakana market. Initially, insufficient compensation was offered to the concerned parties; however, extra funds were eventually allocated for building houses for the families and remunerating stallholders. The project was ultimately completed on November 10, 2018.

Additional details

This project is also known as the Maputo-Catembe-Ponta D'Ouro and Bela Vista Bridge Project or the Maputo-Katembe Bridge and Katembe Bridge/Ponta D'Ouro Road Project. The Chinese project title is 马普托-卡滕贝大桥工程 or 马普托大桥及连接线项目. The Portuguese project title is Ponte Maputo-Catembe-Ponta D’Ouro e Bela Vista or Projecto de Ponte e Estrada Maputo-Katembe.

Number of official sources

21

Number of unofficial sources

25

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Mozambique [Government Agency]

Implementing agencies [Type]

China Road & Bridge Corporation (CRBC) [State-owned Company]; Maputo-Sul [State-owned Company]

Accountable agencies [Type]

Loan type

Concessional

Maturity

20 years

Interest rate

4.0%

Grace period

5 years

Grant element

39.41841566%

Gurarantee provided

No

Insurance provided

Yes