News Column

South Korea to Finance Roads and Landfills

May 29, 2014

The Mozambican government and the South Korean Eximbank on 26 May signed two loan agreements in Maputo valued at US$124 million. One of the agreements, for US$74 million, is for the construction of the road between the northern city of Nampula and the town of Nametil, capital of Mogovolas district. The second, for US$48 million, is to build landfills to deal with urban solid waste from Maputo and the neighbouring city of Matola.

The agreements were signed by Finance Minister Manuel Chang, and the Vice-President of the Eximbank, Yim Seong-Hyeog. The loans have an interest rate of 0.01 per cent, and a maturity period of 40 years, including a 15 year grace period.

Speaking at the signing ceremony, Chang said that, according to the National Roads Administration (ANE), it will take two years to build the 74 kilometre long Nampula-Nametil road, which will greatly improve the link between Nampula and the coastal districts of Moma and Angoche.

"Implementation of this long desired project will empower the development of that area, significantly improving the lives of the people living there, stimulating the extractive industry, and encouraging tourism in the coastal areas", said the Minister.

Moma is already a centre for titanium mining: the Irish company, Kenmare resources, operates a dredge mine there, exploiting the titanium rich heavy mineral sands.

As for the new landfills, Chang said they will give Maputo and Matola "modern facilities to dispose of urban solid waste". They will be able to handle 1,400 tonnes of waste a day.

This project will include a centre to recycle waste, and to produce biogas from garbage. Chang said this would provide a source of employment and income.

For his part, Yim said he was anxious to see progress in constructing the landfills, in order to provide a healthier environment for residents of Maputo and Matola. He hoped that the Nampula-Nametil road would improve the lives of the people living along its route, and facilitate the distribution of goods produced locally.

The first loan agreements with South Korea were signed in 2010. So far there are projects funded by Korea in education, health, public infrastructures, roads and bridges and the environment.

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Source: AllAfrica

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