[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Friday, 7 May, 2004, 16:23 GMT 17:23 UK
Indians in Mozambique rail deal
Indian firms Rites and Ircon have won a $175m (98m) contract to revamp Mozambique's railways, reports say.

The companies will provide $55m towards the cost of the project while the World Bank will issue a loan of $120m, Mozambique's transport ministry says.

The India firms will rebuild the link from Mozambique's second port of Beira to neighbouring Zimbabwe and the north-west of the country.

Mozambique's government has made improving infrastructure a priority.

Mineral resources

In particular, the authorities are trying to improve links to the ports of Maputo, Beira and Nacala, which handle trade between Mozambique and neighbouring South Africa, Zimbabwe, Malawi and Zambia.

"It is a project that fits into the battle against poverty," said Mozambique Transport and Communications Minister Tomaz Salomao.

The contact with the Indian firms will run for 25 years, he said.

It is hoped rehabilitation of the rail routes will lead to growth in the Zambaze Valley which has reserves of wood, cotton and coal.

Mozambique's Mineral Resources and Energy Minister Castigo Langa said he hoped an improved rail network would attract foreign investment in the country's coal industry.




SEE ALSO:
Mozambique transforms its economy
13 Apr 04  |  Business
Mozambique refunds aid to Sweden
29 Mar 04  |  Africa
Mozambique aims for mineral wealth
20 Aug 03  |  Business
Mozambique privatises Maputo port
25 Mar 03  |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific