Mozambique - Beira Railway Project

Updated Project Information Document (PID) Report No: 30280 Project Name MOZAMBIQUE - Beira Railway Project Region Africa Regional Office Sector Railways (100%) Theme Other financial and private sector development (P); Other public sector governance(S) Project P082618 Borrower(s) GOVERNMENT OF MOZAMBIQUE Implementing Agency(ies) CFM Address: Caixa Poatal 2158 Praca dos Trabalhadores, Maputo, Mozambique Contact Person: Mr. Rui Fonseca Tel: 258 (1) 431706 Fax: 258 (1) 313364 Email: ruifonseca@cfmnet.co.mz Environment Category B (Partial Assessment) Date PID Updated September 18, 2004 Auth Appr/Negs Date June 21, 2004 Bank Approval Date October 14, 2004 1. Country and Sector Background Mozambique has sustained a high economic growth rate since achieving peace in 1992, mainly due to the transformation of a centrally planned state-controlled economy into a market-oriented one. As a result of peace, democracy, liberalization, and prudent monetary and fiscal policies, Mozambique's GDP growth rate has been well above the average for Africa. Growth averaged 9% per annum from 1997 to 2002, and is projected at between 7% and 12% annually until 2005. However, continued economic growth will require, among other actions, improvements in basic infrastructure and reduction in impediments to private sector growth. Mozambique is highly dependent upon regional trade and investment flows and regional developments can significantly influence the pace and sustainability of its own development. In 1999, Mozambique ratified the Southern Africa Development Community (SADC) trade protocol, which aims to establish a free trade area in southern Africa, both reflecting GOM's importance to regional integration and giving it greater momentum at the same time. Effective functioning of the transport sector - roads, railways, airports, and seaports