MONTEPUEZ FREIGHT VILLAGE

Project’s Name: Montepuez Freight Village

Project’s Location: Montepuez – Cabo Delgado

Type of Investment: Public and Private Partnership

Project Description:

– Building a Logistic and High Level Services Hub, linked to port facilities of Pemba, by optimising the integration and interconnection of transport modes and enhancing the interoperability of transport services, while ensuring the accessibility of transport infrastructures;

– Economic development – to grow the key opportunity sectors of agriculture, agri-food chain, mining, local manufacturing and SMW; as well as to increase opportunities for residents to enter the formal economy as employees, entrepreneurs, investors, service providers or manufacturers;

– The central importance of socially responsible and competitive businesses, social economy enterprises and a better qualified and participatory workforce must constitute the reference base for recovery policies for the agriculture, manufacturing, and services sectors. ;

– Quality of urban environment – which depends on people being able to access social, business and services facilities in a clean and safe environment.

Project Objective:

– Construction of the Freight Village in (20 Ha) and the Industrial Park (3 Ha) and the main objectives of the anchor project is to extent potentially boost agricultural returns in distinct ways:

– Enhance productivity due to increased agricultural inputs such as high yielding varieties, fertilizers and pesticides. The road will make it easy for farmers to access improved technologies and extension services resulting in a 35-38% increase in returns;

– Increase investments in the area by large tobacco, cotton and sunflower farmers, in so doing create employment;

– Enhance food security since the two provinces are significant producers of the major food crops, hence linking this area to Pemba and Nampula/Nacala will ease exportation of food items to the rest of the country.

Beneficiaries:

– Companies growing tobacco, cotton as well the small a large industry around Montepuez;

– Sunflower farmers, in so doing create employment;

– Small farmers growing food crops and other market crops such as sesame, beans, and cassava;

Products and Market:

– Logistic and Freight Village services

– Business and Residential houses for the district and Municipality;

– Industrial gemstone processing unit;

– Lithium Ion battery production unit;

Public Infraestructures: 

-Well positioned to benefit from road, rail and port infrastructure investments along the Lichinga-Pemba Corridor which will enhance the export competitiveness of agricultural production, mining and processing firms by lowering transport costs;

-It shares the growth potential of the M_CPP_ITDP, that can be enhanced if current infrastructure gaps, especially water supply and roads as well as the planning, regulatory and institutional capacity constraints can be addressed;

– The Project support will be geared towards establishing a well-planned and effectively managed M_CPP_ITDP, including with private participation, with adequate infrastructure and business support services and an efficient, competitive, and business-friendly regulatory environment.

Investment: 

– USD 272,622,900 which 51% is public investment share

Economic & Financial Indicators:

– IRR (Internal Rate of Return) – 21%;

– NPV (Net Present Value) – 8,442,672;

– IRP (Investment Recovery Period) – 5.9.