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
T3 – T4
T4 – T5
T5 – T5A
T5A – T6
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$
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.
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 :
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
Paving and construction of concrete stormwater channels enabling undisturbed functioning of developed tourist and residential complexes.