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Moz rejects cross-border river transport plan on navigability, volume concerns

9th October 2015

By: Keith Campbell

Creamer Media Senior Deputy Editor

  

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Mozambique has had to reject a proposal from the Malawi government to develop commercial river traffic along the Shire and Zambezi rivers. This was recently announced by Mozambique Transport and Communications Minister Carlos Mesquita, following a meeting between representatives of the governments of Malawi, Mozambique and Zambia in the Malawi capital of Lilongwe. The meeting considered a report on the navigability of the rivers compiled by independent consultants.

Malawi had hoped that Mozambique would agree to allow commercial traffic on the two rivers to carry exports and imports between the landlocked country and the port of Chinde, in Mozambique’s Zambezia province – a distance of some 240 km. However, in their report, the consultants concluded that the two rivers were not commercially navigable in their natural state. They would have to be dredged to add about 1.5 m to their depth.

“To carry out the initial dredging, it would be necessary to spend about $18-million, after which another $30-million annually would be necessary to ensure maintenance dredging and $50-million more to carry out the clearance of vegetation which borders the two rivers, along with other costs in investments in port infrastructures and in surveying,” stated Mesquita. Further, the consultants’ report also stated that, even with the dredging, the rivers would only be navigable for some 36% of the year, or for only four or five months.

Consequently, it has been concluded that the two rivers cannot be made commercially navigable without the expenditure of large sums of money. In addition, the quantity of cargo forecast for the period 2015/16 would not exceed 250 000 t.

Separately, Mozambique Public Enterprises, Housing and Water Resources Minister Carlos Bonete has urged the private sector to become involved in the provision of roads and water infrastructure in the country. The government would be unable to meet the increasing demand for both from its own budgets. Regarding roads, these should receive nearly $462 500 (or 18.5-million meticais) this year. So far, only 7 000 meticais has actually be spent. As for water infrastructure, that needs investments of $112.5-million (4.5-billion meticais) over the next five years.

“By the numbers, we may understand that these are extremely costly investments that the Government cannot execute, based on the State budget funds,” he stated. “So, the private sector is called upon to intervene. The indication we have is that the private sector wants to intervene as long as the return on investment, as quickly as possible, is ensured.”

He observed that tolling made roads an attractive investment for the private sector. “We have a good example of [Trans Africa Concessions], which operates on the N4. We are in the establishment phase of a concession in Tete province with the Roads Zambeze [consortium], where there was a great investment. “The Maputo ring road will also be complemented by the bridge to Catembe and the road to Ponta do Ouro – a large investment to be recovered in tolls.”

In addition, there is the need to main- tain existing roads, which is also a major challenge. This is also being dealt with by means of public–private partnerships, he reported.

As far as water infrastructure is concerned, Bonete also believes it will attract private investors because they could use water to produce electricity or create irrigation systems and earn fees from their use. “The rapid recovery of investment is essential,” he highlighted. “It must be able to balance the fact that, where the State invests, return is marginal or in the long term, which is the State’s duty, to provide water . . . or ensure sanitation. “The latter are projects in which we use the funds for which interest rates are low, unlike the private sector, which often resorts to bank credit.”

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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