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FAO-PAP/RAC-MICOA

DEMONSTRATION ACTIVITIES - Xai-Xai IDP

route, but it must be relocated towards the dunes to free the beach area and promenade from traffic.

7.3.5 Cost Estimate

Construction cost was obtained from the Provincial roads department. The rates are based on current internal rehabilitation rates and may be conservative for a large contract where economy of scale comes to play. However, the risk to a contractor may result in high rates. The cost estimate of 150,000 US$ per km includes the preparation of projects to be implemented covering about 5% of total cost amount. Without preparation of cost estimate, construction works should not start (see Table 23 below).

Cost per km = 150,000

T2 - T3

1.153

T3 – T4

1.737

T4 – T5

2.394

T5 – T5A

477

T5A – T6

3.314

Total

9.075

48,000

102,000

150,000

55,344

117,606

172,950

83,376

177,174

260,550

114,912

244,188

359,100

22,896

48,654

71,550

159,072

338,028

497,100

435,600

925,650

1,361,250

Construction Total

Table 23

Backset Distributor road Construction Cost Estimate

Grading and construction of stabilised base (32 % of total)

Paving and construction of concrete stormwater channels (68 % of total)

Cost Estimate in US$

Section No.

Distance in km

7.3.6 Financial Framework

It is to be supposed that Provincial and Municipality authorities would be in charge for providing financial support to Project’s development. Most of investments require engagement of considerable financial means. However, taking into account enormous needs for roads reconstruction in Mozambique, financing from budget lines is not to be expected. In other words, a loan should be claimed from a bank.

The sources from which the loan would be paid back would, among others, be as follows:

    • Contribution from developers in adequate share of their development;

    • Share of the upgraded land value for each concession;

    • Levies and taxis that are regular source for road construction and maintenance; and

    • Specification of tourist levies.

      • 7.3.7

        Project Organisation and Implementation

The extenuating circumstance for financing the entire Project is that all the investments could be divided into two physically and in terms of time independent sections, namely :

  • a)

    Grading and construction of stabilised base, being the smaller amount in investments percentage, and creating above all access to built-up areas in the planned development cells; and

  • b)

    Paving and construction of concrete stormwater channels enabling undisturbed functioning of developed tourist and residential complexes.

149

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