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AfDB approves 400 mln USD loan to support Mozambique's LNG project

MAPUTO
2019-11-27 03:47

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MAPUTO, Nov. 26 (Xinhua) -- The African Development Bank (AfDB) announced on Tuesday that it has approved a loan of 400 million U.S. dollars to support the construction of an integrated natural gas liquefaction plant in Mozambique.

"Through this approval, the bank carries a mandate to ensure the project's adherence to international transparency standards and full compliance with environmental and social requirements, in line with its Integrated Safeguards System," said a statement released by the AfDB.

According to the bank's president Akinwumi Adesina, the bank demonstrates its leading role in supporting Africa's transformation.

"The catalytic effect brought about by the bank is strategically aimed to help transform Mozambique from 'developing' to 'developed' nation," the statement quoted the president as saying.

Working closely with the government of Mozambique, Adesina said, it can ensure that the local population reaps the benefits from its nascent natural gas value-chain, thus creating growth opportunities and widespread industrialization, while at the same time accelerating regional integration across Southern Africa.

By its approval, the AfDB joins a global syndicate of commercial banks, development finance institutions, and export credit agencies, to jointly provide the requisite financing for the project.

In addition, the bank's participation introduces key social and economic indicators into the loan monitoring, including areas such as job creation, gender empowerment, and linkages for small businesses, said the statement.
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