The Board of Directors of the African Development Bank Group (AfDB) has officially permitted a US$193 million bank loan and a US$50 million loan from Africa Growing Together Fund (AGTF).
The loan is in place to support the rehabilitation of the Chinsali-Nakonde road, a section of the North-South Corridor in Zambia, connecting to Tanzania.
The project aims to improve road transport infrastructure and services as well as reduce transport costs between northern Zambia and southern Tanzania. It is also expected to provide efficient, cost-effective and fully integrated transport infrastructure and operations that addresses the needs of users and promotes socio-economic development.
It comprises the reconstruction of the 210 km road between Chinsali and Nakonde; institutional support and capacity building; and resettlement and compensation.
With a total cost estimated at US$255.76 million, the AfDB and AGTF loans represent 75.5% and 19.5% of the costs, respectively. Zambia’s government is expected to provide the remaining 5%.
Edited from source by Joseph Green. Source: AfDB