Project ID: 31066

China Eximbank provides RMB 656 million government concessional loan for Beira-Machipanda (N6) Road Rehabilitation Project (Linked to Project ID#57336)

Commitment amount

$ 103666071.3

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

Loan

Concessional

Yes

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

ODA-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

2013

Implementation

2015

2015-04-01

Actual start

Completion

2019

2019-11-14

Actual

Description

On November 15, 2013, China Eximbank and the Government of Mozambique signed a government concessional loan (GCL) agreement worth RMB 656,000,000 for the Beira-Machipanda (N6) Road Rehabilitation Project. This GCL carried the following terms: 21 year maturity, 7 year grace period, and 1% interest rate. Then, on January 13, 2014, China Eximbank and the Government of Mozambique signed a preferential buyer’s credit (PBC) agreement worth $312,400,000 for the Beira-Machipanda (N6) Road Rehabilitation Project. This PBC carried the following terms: 20 year maturity, 7 year grace period, and 1.5% interest rate. Project ID#31066 captures the GCL and Project ID#57336 captures the PBC. The project involved the upgrading and rehabilitation of an 288 km road from Beira to Machipanda and a bridge that was constructed over the River Pungue. The completion of the project was expected to shorten the journey from the western border of Mozambique to the port of Beira from 7 hours to 4 hours, thereby facilitating regional connectivity, stimulating the development of agriculture, tourism and other industries along the route, and promoting exports. A formal groundbreaking ceremony was held on July 10, 2014. However, construction did not begin until April 1, 2015. The project was ultimately completed and National Highway No. 6 was opened to traffic on November 14, 2019.

Additional details

The Portuguese project title is Reabilitação da Estrada N6: Beira-Machipanda. The Chinese project title is 莫国家6号公路改扩建项目 or 莫桑比克交通干线N6公路改扩建项目 or 莫桑比克6号国道(EN6)项目. In the database of Chinese loan commitments that it released in July 2020, SAIS-CARI does not record the terms (20 year maturity, 7 year grace period, and 2% interest rate) of this loan.

Number of official sources

12

Number of unofficial sources

16

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Details

Cofinanced

No

Receiving agencies [Type]

Government of Mozambique [Government Agency]

Implementing agencies [Type]

Anhui Foreign Economic Construction Group Co., Ltd. (AFECC) [Private Sector]

Loan type

Concessional

Maturity

21 years

Interest rate

1.0%

Grace period

7 years

Grant element

64.19649283%

Gurarantee provided

No

Insurance provided

No