Nacala Port Loan Deal Signed

Business & Finance

The Japanese Government has agreed to provide Mozambique with a loan of about $280 million for the second phase of the northern port of Nacala development project.

The memorandum was signed by Deputy Foreign Minister Nyeleti Mondlane and Japanese ambassador Akira Mizutani in Maputo yesterday.

The first phase of the rehabilitation project began in March 2013, and the second phase is scheduled to begin this month. It includes, among other work, continued dredging of the north quay, land reclamation and leveling and paving the container terminal. The contract was awarded to the Japanese company, Penta Ocean Construction.

This is the final loan from Japan for the Nacala port development project. The first credit disbursed in 2012 was for $30 million, followed by a second in 2013 for $70 million.

The loan has a repayment period of 30 years, with a ten year grace period, and an interest rate of 0.01 per cent.

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