Nacala Port and Railway System

Purpose of Initiative: The U.S. contribution to the Nacala Port and Railway System will support the partnership rehabilitation of an existing port in Mozambique and connecting rail system linking Mozambique and Malawi. Restoration of the transportation system, damaged during Mozambique’s 16-year civil war, will improve the efficiency of food aid distribution in Southern Africa and, in particular, into Malawi, a country where one-third of the population is suffering from a combination of poor harvests, chronic poverty and a high rate of HIV/AIDS infection.

Resources: The U.S. Government support for the Nacala Port and Railway System is through a loan to U.S. private sector investors of up to $29.6 million to restore track, locomotives, cranes, tugboats and other infrastructure related assets.

Partners: The Overseas Private Investment Corporation (OPIC), Mozambique Government, Corredor de Desenvolvimento do Norte (Mozambique), the Central East African Railways Company (Malawi), and private sector investors in the United States.

Partnership Efforts to Date: Dr. Peter Watson, President of OPIC, announced the initiative at the World Summit on Sustainable Development in Johannesburg on August 29, 2002. OPIC is working to complete due diligence and final agreement on the loan package by the second quarter of 2003.

USG Points of Contact: Overseas Private Investment Corporation: Larry Spinelli (Phone: 202-336-8690; E-mail: lspin@opic.gov).