Mozambique Borrows US$143 Million From World Bank
The World Bank’s Board of Executive Directors has approved four loans totalling $143 million for development projects in Mozambique.
The largest loan, for $50 million, is a second instalment of World Bank funding for the Maputo Municipal Development Programme. According to the Bank this is intended “to increase the coverage and quality of Maputo Municipality's services to its citizens by continuing to strengthen its institutional and financial capacities”.
The project “will support actions towards ensuring the financial sustainability of the Maputo Municipal Council, including raising revenues and rationalizing expenditures with the support of an integrated financial management system”.
A second loan, for $39 million, goes towards a Health Commodity Security Project that is designed to improve the availability of selected drugs and medical supplies. According to the Bank, it “will finance the procurement of much-needed selected essential commodities to prevent and treat HIV/AIDS, malaria, TB, and promote reproductive and child health”.
The third credit is for $34 million of additional funding for the existing Water Services and Institutional Support Programme, intended to increase water service coverage in the cities of Beira, Nampula, Quelimane, and Pemba.
Finally, a $20 million loan will be spent on a “Spatial Development Planning Technical Assistance Project” which “will specifically seek to strengthen and develop capacities of the coordination commission for studies and projects at the Ministry of Transports and Communications; implement south-south cooperation schemes; and introduce cross-cutting institutional development programs”.
The money comes from the World Bank’s soft loans affiliate, the International Development Association (IDA). IDA credits carry no interest, and repayment is usually staggered over a period of up to 40 years, including a ten-year period of grace.
Source: AIM Mozambique News Agency