China Eximbank provides RMB 408,265,000 government concessional loan for the Development and Expansion of National Route 2 (RN2) from Toamasina to Tsarakofafa Project

Project narrative

On January 19, 2018, the Chinese Government and the Government of Madagascar signed a preferential loan framework agreement on the Development and Expansion of National Route 2 (RN2) from Toamasina to Tsarakofafa Project. Then, on September 3, 2018, the Government of Madagascar signed an RMB 408,265,000 government concessional loan (GCL) agreement with China Eximbank for the Development and Expansion of National Route 2 (RN2) from Toamasina to Tsarakofafa Project. Several months later, on December 28, 2018, the Malagasy High Constitutional Court authorized the ratification of the loan agreement. The GCL carries the following borrowing terms: a 30 year maturity, a 5 year grace period, and a 1.5% interest rate. The project involves the widening of a 3.606 km existing stretch of highway from National Route 2 (RN2) to Pangalane Bridge and the construction of a 6.26 km stretch of highway between Pangalane Bridge to Tamatave Port. Once the highway is operational, a toll system will be put into place. The RN2 is the major highway in Madagascar that connects to the capital city of Antananarivo. The ultimate purpose of this project is to de-congest traffic on the RN2. Anhui Foreign Economic Construction Group Co. (AFECC) is the contractor responsible for implementation. Construction began on April 7, 2019 and was originally expected to last for two years. However, the project encountered multiple delays and obstacles. As of September 2024, the project had achieved a 25% completion rate. As of December 2024, the project was 30% complete and it was scheduled for completion by December 2025.