WASHINGTON, July 31, 2007 – The World Bank Board of Executive Directors today approved an International Development Association (IDA) credit* of US$15 million in additional lending for the Government of Mozambique’s Higher Education Project (HEP).
The additional credit will cover the financing gap in the original HEP, created by overruns in civil works and equipment. It will also be utilized to scale up successful on-going higher education science and technology programs being implemented under the project, including the provincial scholarship fund, the competitive Quality Enhancement and Innovation Facility and the National Research Fund. Disadvantaged science students and excellent performers in science and technology will also benefit from the additional credit.
“This demand-driven financing seeks to complete and scale-up activities initiated in the previous credit, resulting in the enhancement of equitable access, quality and efficiency of the higher education system in Mozambique,” said Xiaoyan Liang, World Bank Task Team Leader for the project.
The original project, financed by an IDA credit of $60 million, was approved in March 2002. The additional credit will support the original project development objectives to:
(i) Enhance the internal efficiency of the relevant institutions and expand the output of graduates;
(ii) Improve equitable access to higher education in the country; and
(iii) Improve the quality of teaching and learning, and the relevance of the curriculum.
The original Higher Education Project requires a counterpart contribution of 15% for local expenditures in civil works and goods; 5% for consultants; and 50% for operating costs. The additional credit, however, will provide 100% IDA financing based on the new IDA financing parameter established for Mozambique.
* The credit is provided on standard International Development Association (IDA) terms, with a commitment fee of 0.35 percent, a service charge of 0.75 percent over a 40 year period of maturity which includes a 10-year grace period.