On Thursday, May 29, the Mozambican government announced it has secured $1.1 billion (approximately 69.5 billion meticais) to begin the Mozambique’s National Road Number 1 (N1) Rehabilitation Project, the country’s main highway connecting the north to the south. The road has been in poor condition for years, creating major challenges for the transport of goods and people.
Overall Cost
The full rehabilitation of the 2,620-kilometer stretch of the N1 is expected to cost a total of 224 billion meticais, or $3.5 billion—far more than what has currently been secured.
“Of the $3.5 billion required, we have already secured $1.1 billion. These funds will be released in stages as the work progresses,” said Transport and Logistics Minister João Matlombe, as quoted by Lusa. He acknowledged ongoing difficulties in securing the remaining funding but affirmed the government’s commitment to fully restoring the road.
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Mozambique’s National Road Number 1 Rehabilitation Project Factsheet
Key funders:
World Bank: The primary funder, providing an US$850 million Multi-Phase Programmatic Approach (MPA) operation over three IDA cycles. The first phase of this financing package amounts to US$400 million (IDA grant).
Saudi Fund for Development: Providing US$50 million for the rehabilitation of specific sections (e.g., Benfica-Zimpeto and 3 de Fevereiro-Incoluane).
Government of Mozambique: Contributing counterpart financing.
Initial Priority Sections (First Phase – World Bank financing):
- Inchope-Gorongosa (70 km)
- Chimuara-Nicoadala (176 km)
- Metoro-Pemba (94 km)
- Gorongosa-Caia (84 km) – tender launched for contractor selection.
Project Timeline:
- Initial announcement of rehabilitation intention: April 2022.
- World Bank approval of first phase financing: August 2022 (effectiveness: December 2022).
- Formalization of World Bank grant: March 2023.
- Expected start of first phase works: May 2024 (as announced in August 2023).
- Overall project duration (World Bank program): 10 years (2 years construction, 8 years maintenance).
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Mozambique’s National Road Number 1 (N1) Rehabilitation: Which Sections will be Rehabilitated?
As part of the first phase of work under a World Bank financing package valued at 54.4 billion meticais ($850 million), the government has begun a project to rehabilitate 340 kilometers of the N1. The targeted segments include Inchope to Gorongosa (70 km), Chimuara to Nicoadala (176 km), and Metoro to Pemba (94 km).
Significance of the N1
The N1 is Mozambique’s only continuous roadway connecting the southern, central, and northern regions. It has long been the site of frequent and often deadly traffic accidents, particularly involving public transportation. Authorities attribute many of these accidents to excessive speeding, compounded by the road’s deteriorated condition.
Back in April 2022, the administration led by then-President Filipe Nyusi announced plans to rehabilitate the N1. At that time, the Ministry of Public Works, Housing, and Water Resources estimated the cost at \$750 million. More recently, in February of this year, the Confederation of Economic Associations (CTA) once again stressed the urgency of restoring the N1, calling it “the backbone” of the national economy. The private sector views the road’s rehabilitation as critical for strengthening logistics corridors and improving the flow of goods and people across the country.
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