SECTOR DE TRANSPORTES E COMUNICAÇÕES

Science and Technology (S&T) Park

Location: Mocuba – Zambezia Province
Implementor: Public and Private Paterneship
Project Objectives: The Project aims at converting the old and disrupted premises of the “Textil de Mocuba” Factory in a Science and Technology (S&T) Park, a specific 20 hectares’ large area for activities relating to innovation, education, R&D – mainly in agro food chain related sector.
Project Description:
The Science and Technology Park with a surface equipped area of 19 hectares, divided in three main areas:
1. The Technology Core: based inside the regenerated old premises of Textil de Mocuba where one can find:
– The Landmark Buildings – the park’s most distinguished features.
– The Campus Public Realm – a great tree-lined green open space connecting the Campus Core to the Landmark Building.
– The Campus Core – home to technology-driven, specialized university buildings.
– The R&D Core – a low-rise development with incubator facilities for technological innovations.
2. Located between the Technology Core and the Industrial Zone, the Technology Corridor will comprise of:
– R&D centers.
– Light manufacturing facilities.
– Two residential areas with sports and entertainment centers, including retail shops, health care and civic amenities.
The Industrial Zone is the park’s manufacturing arm, purposefully located to minimize environmental impact and traffic disruption.
Beneficiaries:
– Residential units for 2.000 inhabitants (first phase)
– Hotel accommodations for not less of 500 beds
– Buildings to accommodate Food and Non-Food Public Market
Products and Market:
– Residential units to accommodate 2,000 inhabitants;
– 2 hotels for 500 beds and 4 buildings to accommodate shopping’s malls, civic centers, offices and training centers

Public Infrastrutures:
– Land available 20 hectares. Next to the S&T Park, occupying an area of about 10 hectares, a new mixed-use zone will be built.
– Electricity and water from Licungo River available in Mocuba city.
Total Investment:
USD 185,800,750 (which 45% is public contribution in infrastructure)
Economic and Financial Indicators (Private Investment): Private Interventions: Hotel, Shopping Malls and Housing = 61,282,500 USD
– IRR = 11%
– NPV = 3,610,107
– Recovery Period of Investment (Years): 10.4

Montepuez Freigth Village

Location: Montepuz – Cabo Delgado
Implementor: Public and Private Paterneship
Project Objectives: 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.
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.
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 Infrastrutures:
– 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.
Total Investment all phases for 3 interventions:
USD 272,622,900 which 51% is public investment share
Economic and Financial Indicators [Private Investment only]:
Investment for Gemstone & Lithium Ion Battery Factory = 15,100,000 USD
– IRR = 21%
– NPV = 8,442,672
– Recovery Period of Investment (Years): 5.9

North South Railway Line

Location: North South Corridor
Implementor: Public and Private Paterneship
Project Objectives: NS Corridor proposal combines the existing rail infrastructure (CFM Lines), the planned extension lines (SPD – Development Corridors), and new proposed lines.
Project Description: The railway network of Mozambique is 3,115 km long. It is organised in three different sub-networks:1) CFM Norte: North Railway Network; 2) CFM Centro: Central Railway Network, and; 3) CFM Sul: Southern Railway Network.
NS Corridor proposal combines the existing rail infrastructure (CFM Lines), the planned extension lines (SPD – Development Corridors), and new proposed lines. The latter foresees two main sets of new railway lines:
1) New Railway Lines with North-South paths, composing the NS Backbone, running from Mocimboa da Praia to Ponta de Techobanine, and;
2) New Railway Lines with West-East paths, defined as Rail-Port Links, and aimed at integrating rail and maritime transport since the very first beginning of the implementation of the new NS Railway Corridor.
Beneficiaries:
The country population basically in the rural and peri-urban areas for local transport and personal goods.
Freight for national ports and provincial stations and international demand for export goods linking all ports.
Products and Market:
Freight for at least 140,000,000 tons for national demand by rail and 40,000,000 tons as international demand by rail and considering:
(a) On the left: CFM Lines, with E-W Paths, linking the main coastal centres with ports to inland regions. In the centre: National Backbone, resulting from SPD Development Corridors and new Development Corridors proposed.
(b) On the right: Rail-Ports are highlighted, connecting the proposed NS Backbone to existing and planned ports.
Public Infrastructures:
Existing Lines to be connected:
(a) The northern network is composed by the following lines: Nacala line; Lichinga line, and; Rio Monapo-Lumbo line. The total length of the North Network is 914 km.
(b) Central network composed by the following lines: Machipanda line, and; Sena line. There are also two other non-operational lines: Dona Ana-Vila Nova Fronteira and Quelimane-Mocuba. If operational, the total extension would be 1,139 km.
(c) Southern network composed by the following lines: Limpopo line; Goba line, and; Ressano Garcia line. There are also other minor lines with which the total length of the Southern network reaches 1,062 km. In general, 83,8% of the existing lines is currently operational.
Total Investment:
USD in Million:
Basic Scenario = 19,737.77
Pessimistic Scenario = 23,775.33
Optimistic Scenario = 15,750.22
Economic and Financial Indicators (Private Investment):

Dondo Dry Port

Project Localization: Dondo District
Nature of Investment: Public Privater Patnership (PPP)
Project Description: Dondo Dry is Port situated at inland from the Port of Beira, which is the second largest port in Mozambique and is located about 1,200 kms north of Maputo, midway along the Mozambique coast at the mouth of the Pungue River and is 20 km from the open sea.
The Dondo Dry Port is designed to modernize and improve efficiency at Beira Port. As imports and exports increase, the congestion and transit times for cargo requires additional, improved logistics to meet demand. The congestion leads to security and social problems which has a serious negative impact on the population. In addition, trucks are often overloaded in order to increase productivity and profits, but this leads to increased infrastructural maintenance cost.
Project Objectives:
The overarching goal of the Dondo Dry Port project is to boost the logistical performance of the Beira Corridor in Mozambique in order to create a hub for import/export growth in Mozambique and the greater SADC region.
The Dondo dry port will alleviate much of this problem with congestion and allow for authorities to improve their ability to regulate truck weights and mandatory standards.
This project will increase the effectiveness of the transport chain, to develop the hinterland, provide cheaper extra stacking space, strengthen multimodal solutions, help minimize traffic bottlenecks and create employment.
Beneficiaries:
– Local population, private sector, Dondo and Beira Municipalities.
– However approximately 80% of the labor force works in agriculture, 6% in industry and 13% in services making the available work force for dry port construction particularly limited. Current estimates place nationwide adult literacy levels at under 56%, with most of the literate Mozambicans living in urban centers. In Mozambique, technically or professionally qualified labor force remains small, and highly qualified professionals have been educated abroad and have often used to receive international salaries.
Products and Market:
Market:
– Internal market.
– SADC region (Zimbabwe, Botswana, Malawi, Zambia and DRC).
Public Infrastructures:
– Container Yard (CY)
– Container Freight Station(CFS)
– Access roads, Railway link or sidings, Inland Water Transport (IWT) berths
– Break-bulk receiving and storage area
– Bulk receiving and storage area
– Administrative office with space for banks, forwarders and cargo agents
– Customs office
– Container light repair facility
– Secure fence and entry point
– Cargo handling equipment (RTGs, RMGs, reach stackers, empty lifters, forklifts, container chassis, prime movers etc.)
Total Investment:
$ 61.3 Millions
Economic and Finacial Indicators (Private Investment):
The revenues for the developer company are:
– Concession fee for the intermodal terminal and the container freight station, to obtain a profitability of 28%:
– USD 7,301,397/year
– Income from rental of logistics buildings: USD 5/m2 monthly. Initially 10,000m2 of building facilities will be rented, increasing 15,000m2 yearly up to 125,000m2
– Income by built-up plot rental of the service center:
– USD 0.065/m2 monthly.
– In 2015, the plot of the first phase will be rented and the plot of the second phase in 2019.

The operating results for the Developer Company of intermodal terminal and CFS are:
– The Internal Rate of Return (IRR) previously agreed is 28%, which can be considered suitable for a business of this kind in Mozambique (taking into account the country risk). From this IRR, the fee to be paid by the operator is calculated
– The resulting Net Present Value (NPV), after taxes is $ 27,608,912 discounted at a WACC discount rate of: 17.9%.
– A financing peak of -$29,234,781 will take place in the year 2014
– The investment will be recovered in the year 2021.

The operating results for the concession holder are:
– The Internal Rate of Return (IRR) previously fixed is 26.04 %.
– The resulting Net Present Value (NPV), after tax is $ 8,841,601 discounted at a discount rate of 17.9%.
– A financing peak of -$12,822,686 will take place in the year 2014.
– The investment will be recovered in the year 2021
– The concession fee obtained is USD 7,301,397 yearly

The operating results for the Developer Company of the inland terminal are:
– The Internal Rate of Return (IRR) previously fixed is 18.84%.
– The resulting Net Present Value (NPV), after tax is $ 3,280,000 discounted at a WACC discount rate of: 17.9%.
– A financing peak of -$71,030,806 will take place in the year 2014
– The investment will be recovered in the year 2022