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China Daily Website

China Eximbank lends Mozambique $416.5m for road rehabilitation

Updated: 2013-11-16 13:19
( Xinhua)

MAPUTO -- China Export-Import Bank on Friday agreed to lend $416.5 million to finance a major road rehabilitation project in central Mozambique.

Visiting China Eximbank Vice President Zhu Hongjie signed the deal in Maputo with Mozambican Finance Minister Manuel Chang for the rehabilitation of EN6 road which links port city of Beira with border town of Machipanda.

The loan is concessional, with maturity period of 20 years including seven years grace and an interest rate of 1 percent.

Chang told reporters that the agreement ensures the disbursement of 25 percent of the total cost of the project. The remaining 75 percent will be secured through a separate agreement to be signed in January 2014.

The rehabilitation of the 286-km Beira-Machipanda road will stimulate the transit of goods between Mozambique, Zimbabwe, Malawi and Zambia.

 
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