The European Investment Bank (EIB) confirms the recent disbursement of €73.6 million (approximately MGA 343 billion) to the Malagasy Road Agency for the ongoing work on the RN13 and RN6 highways in Madagascar.
“The European Investment Bank is committed to supporting high-impact transport investments that improve the economic and social opportunities of rural communities while safeguarding the environment. The modernisation of the RN13 and RN6 roads chimes with this goal and the EIB, as a member of Team Europe, is pleased to support this key project for Madagascar and its people,” said EIB Vice-President Ambroise Fayolle.
The disbursement includes a €50.4 million loan (some MGA 235 billion) from the EIB, and a grant of €23.2 million (around MGA 108 billion) from the European Union.
“The support from the European Union and its bank, the EIB, for this important project aims to have a real impact on Madagascar’s inclusive and sustainable development. The project will contribute to inclusive growth by improving connections between regions. It is in line with the goals of the Global Gateway strategy of the European Union, which aims to enhance people’s daily lives via sustainable, resilient, inclusive and secure transport networks ,” said EU Ambassador to Madagascar Isabelle Delattre Burger.
This Madagascar road network modernisation project concerns the rehabilitation of National Highway 6 (RN6) between Diego Suarez and Ambanja and National Highway 13 (RN13) between Ambovombe and Fort-Dauphin. This project is being financed to the tune of €235.5 million, thanks to a grant of €116 million from the European Union, a loan of €110 million and technical assistance (grant) of €4.7 million from the EIB, as well as financing worth €4.8 million from the Republic of Madagascar. The project will enable the modernisation of 348 kilometres of roads in Madagascar. A total of €100.4 million has already been paid under this operation.
The project is also receiving EU technical assistance to ensure that it benefits from environmental and social engineering best practices. Sustainable solutions are increasingly important for road maintenance.
Background information
The European Union is an economic and political union of 27 European countries. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law, and respect for human rights, including the rights of persons belonging to minorities. It works globally to promote sustainable development of societies, the environment and economies, so that everyone can benefit from it.
The European Investment Bank is the long-term lending institution of the European Union owned by its Member States and is the largest international public sector bank in the world. It makes long-term concessional finance available for sound investment in order to contribute towards EU policy goals. Since 1970, the EIB has lent €893 million to support long-term investments in Madagascar, including the modernisation of road and rail links and the repair of main roads damaged by tropical cyclones.
EIB Global is the EIB Group's new specialised arm dedicated to increasing the impact of international partnerships and development finance. It is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through its offices across the world.