Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS
A lock ( ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

  • Closed Compact Report:  Closed Compact Report: Mozambique Compact
  • March 2015

Rehabilitation/Construction of Roads Project

  • $176,307,480Original Compact Project Amount
  • $136,802,301Total Disbursed

Estimated Benefits

Estimated Benefits for the Rehabilitation/Construction of Roads Project
Time Estimated Economic Rate of Return (ERR) over 20 years Estimated beneficiaries over 20 years Estimated net benefits over 20 years
Not specified 7.3 percent 1,237,734 $-13,280,000

Estimated benefits corresponds to $127.7 million of project funds, where cost-benefit analysis was conducted.

Project Description

The objectives of the Roads Project were to:

  • improve access to markets, resources, and services;
  • reduce transport costs for the private sector to facilitate investment and commercial traffic;
  • expand connectivity across Mozambique’s northern region and towards the southern half of the country; and,
  • increase public transport access for individuals to take advantage of job and other economic opportunities.

In its design, the project was to rehabilitate 491 kilometers of high-priority interventions on key segments of National Route 1, which form the backbone of the country’s transportation network. Due to higher than expected costs identified during the preparation of full feasibility studies and detailed engineering designs, MCC and the Government of Mozambique agreed to re-scope the activity to two segments totaling 253 kilometers of improved road. At the conclusion of the compact, approximately 90 percent of the 150 kilometer road segment and 70 percent of the 103 kilometer segment had been completed. As a result, the Government of Mozambique committed a total of $30 million (an initial tranche of $10 million and a subsequent tranche of $20 million) to finish the works and cover the associated project management costs. These works were completed in December 2014.

Evaluation Findings

MCC commissioned a performance evaluation of the Roads Project that will measure road roughness, road maintenance, annual traffic, and vehicle operating costs. The final report is expected in 2021.

Key performance indicators and outputs at compact end date

Key performance indicators and outputs at compact end date
Activity/Outcome Key Performance Indicator Baseline End of Compact Target Quarter 1 through Quarter 20 Actuals (as of Dec 2013) Percent Compact Target Satisfied (as of Dec 2013)
Road Rehabilitation Kilometers of roads issued "Take-over Certificates" 0 253 253 100%
Percent of roads works contracts disbursed 0 100 88 88%