Multinational – Malawi/Zambia - Nacala Road Corridor Development Project – Phase IV (AFDB-P-Z1-DB0-232)

Countries
  • Zambia
Where the impacts of the investment may be experienced.
Financial Institutions
  • African Development Bank (AFDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Feb 28, 2020
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Government of Zambia
The holder of the loan, grant, or other investment.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 12.05 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ AFDB website

Updated in EWS Sep 8, 2020


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Project Description

According to bank documents, the project is expected to contribute to improving efficiency along the Nacala Road Corridor. At regional level, the objective is to contribute to improving road transportation and trade facilitation along the Nacala Road Corridor from Lusaka in Zambia through Malawi and Mozambique to the Port of Nacala and therefore to enhance competitiveness and socioeconomic integration between the three countries.

The proposed operation is an ADF Loan of UA 8.751 million to the Republic of Zambia as supplementary financing to cover the funding gap of the Multinational Nacala Road Corridor Project Phase IV. The project involves rehabilitation of a 75 km road between Liwonde and Mangochi in Malawi along the Nacala Road Corridor as well as establishment of OneStop-Boarder-Posts (OSBPs) between Malawi and Mozambique and between Malawi and Zambia. The main component of the project on the Zambian side is the construction of a One Stop Border Post (OSBP) at Mwami. It has however been noted that there is significant budget shortfall to cover all the activities to construct the OSBP mainly arising from a design review that resulted in a higher cost than was originally anticipated. Further, the Road Development Agency has proposed to the AfDB the need to incorporate the construction of two permanent weighbridges to be located at Mwami and Katete in order to ensure sustainability of the investment on the Great East road. This Supplementary Loan operation aims to cover the above funding shortfall to enable the Project to fully achieve its objectives. As per initial design, the project under supplementary financing will retain the same 4 components, namely: road rehabilitation and safety improvements; transport and trade facilitation; social inclusiveness activities; and support to project management.

Investment Description
  • African Development Bank (AFDB)
Contact Information

Name ISOOBA Daniel Mukunya
d.isooba@afdb.org 

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at https://www.afdb.org/en/independent-review-mechanism/