Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • Malawi
  • Mozambique
Banks:
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • International Finance Corporation (IFC)
Status: Pipeline
Bank Risk Rating: A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower or Client: Corredor Logistico Integrado De Nacala SA
The holder of the loan, grant, or other investment.
Sectors:
The service or industry focus of the investment. A project can have several sectors.
  • Infrastructure
  • Transport
Project Cost (USD): $ 4,500.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.

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Primary Source

Original disclosure @ IFC website
Updated in EWS: 2017-06-21
Disclosure Date: 2016-12-23
Nacala Corridor
IFC-34466

Project Description
The Nacala Corridor Railway and Port project in Mozambique and Malawi (the “Nacala Corridor” or the “project”) is designed to support the development and exploration of Vale Mozambique’s coal deposit located in Moatize in Mozambique’s Tete Province, Northwestern Mozambique (“Moatize mine”). The Moatize mine has been producing coal since July 2011 and mine production will ramp up gradually to a capacity of 18 million tons per annum (mtpa), and possibly expanded to 22 mtpa. The project provides logistical support allowing for the export of up to 18 mtpa of coal, while 4 mtpa may continue to be exported through the Sena-Beira rail line. The Nacala Corridor railway (the “railway”) connects the Moatize mine to a new coal handling terminal and port at Nacala-a-Velha (the “NAV port” or the “terminal”) through Malawi, and comprises: -230 km of new (“greenfield”) single narrow gauge rail track, out of which 62.5 km in Northwestern Mozambique (Section 2), 138.5 km in Malawi (Section 3), and 29.3 km (Section 8) from the bifurcation from brownfield rail line in Monapo region to the NAV port; -the rehabilitation of 682 km of existing (“brownfield”) narrow gauge rail track, including 98.6 km in Malawi (Section 5) and 584.4 km in Mozambique (Sections 6 and 7); and -the construction of the NAV terminal and port, located at Namuaxi Point on the eastern shore of the Baia de Nacala (Nacala Bay), approximately 5 km from the main town of Nacala and to the north-west of the existing Nacala port, located just across Nacala Bay. Nacala port, with a natural water depth of 23 meters, is regarded as the best deep water port in Eastern Africa. Railway construction started in May 2011 and has been completed for all sections in late 2015 except sections 6 and 7 (brownfield) where project completion was achieved in 2016. Construction of the NAV terminal and port started in April 2011 and was completed in July 2015. In addition, the project includes the rehabilitation of a spur line of 96 km from Nkaya to Limbe in southern Malawi. Phase 1 of the rehabilitation (from Lirangwe to Blantyre - 39 km) is complete; the remaining section is planned to be completed in the first quarter of 2017. The upgrade of this section of the Malawian network will have a positive development impact on the region for improved transportation of both passengers and general cargo.
Investment Description
Contact Information
ACCOUNTABILITY MECHANISM OF IFC The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/
Bank Documents