- The World Bank and the Madagascan Government approves spending on major infrastructure projects connecting to BlackEarth Minerals’ (BEM) Maniry Graphite project
- The project will receive a US$534.9 million (A$741.27 million) boost, with a significant portion to be used to upgrade proposed logistics route from Maniry to the port at Tolagnaro
- Importantly, the project will finance the rehabilitation and paving of a 400 kilometre stretch of road which will provide reliable access to the southern part of the country
- The World Bank is also engaged in advanced policy dialogue with the government regarding reforms on key transport modes
- BEM shares hold steady at 13 cents
The World Bank and the Madagascan Government have signed and approved spending on major infrastructure projects totalling US$534.9 million (A$741.27 million) to BlackEarth Minerals’ (BEM) Maniry Graphite project.
A significant portion of the funds will be used to upgrade the key proposed logistics
route from the Maniry Project site to the port at Tolagnaro to improve connectivity, resilience and management.
Importantly, the project will finance the rehabilitation and paving of a 400 kilometre stretch of road on the RN10 and 100 kilometres of RN31 which will also support the maintenance of about 500 kilometres of local roads in the vicinity of the RN10 and RN31 to reach adjacent rural communities.
The funds will provide reliable and year-long access to the southern part of the country that is most affected by food insecurity, while the rehabilitation of the RN31 and associated local roads will unlock a key agricultural region in the northwest.
“This proactive approach to supporting both local and foreign investment in the area is certainly a win-win for all current and future stakeholders and reinforces the positive investment climate that exists in Madagascar,” Managing Director Tom Revy commented.
“It will now provide us with the option of using both the ports of Toliara and where we have already been granted export rights, at Tolagnaro.”
The Connecting Madagascar for Inclusive Growth project supports the government’s vision to develop the transport sector using an integrated long-term and multimodal approach.
Madagascar President Andry Rajoelina said the project will “contribute to revitalising development in this region which has long suffered from isolation and recurrent droughts”.
The World Bank is also engaged in advanced policy dialogue with the government regarding reforms on key transport modes such as railways, ports, urban transport, and aviation.
BEM shares held steady at 13 cents at market close.