Mozambique: Chapo says it is a “golden age” to renegotiate megaprojects – O País

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Mozambique: Chapo says it is a “golden age” to renegotiate megaprojects – O País

1:57 CAT | 24 Jun 2025

Image: O País

Daniel Chapo says the government is working to find ways to renegotiate contracts with multinationals to benefit the Mozambican people more, and there are currently many contracts coming to an end. However, the president warns that it is important not to stop the projects. Chapo, who was speaking to journalists this Sunday, also said that it is TotalEnergies’ responsibility to lift its own ‘force majeure’ edict and forward with the LNG project.

It was the first time that the head of state opened himself up to being questioned about everything, absolutely everything. The management of the economy and politics in his government dominated the more than 30 questions asked, and Daniel Chapo answered them all.

One of the questions asked is the status of the renegotiation of contracts for megaprojects, which he promised, and other measures to maximize his contribution and reverse the poverty scenario in the country.

Daniel Chapo explained that his government is working to review some contracts to maximize the benefit to the community.

“We have contracts that are ending. This is a golden era and we believe that we need to find other ways to renegotiate some clauses that can benefit the Mozambican people. For example, we now have one that was signed in 1997, which is from Track. In 2027, it will end. We already have a team at the Office of Reforms and Strategic Projects analyzing the contract, because this is another problem. We cannot wait for the contract to end,” said the President of the Republic.

The contract with Kenmare, which exploits heavy sands in Moma, which is awaiting renewal, is, for now, one of the main targets, and the government is working to ensure greater benefit.

“It is not our intention to halt projects that are underway or projects that are in an investment phase, the outcome phase, for those who understand that this is the investment phase, and only then will the income phase come. We need to nurture these projects in this phase. What we have said is that we will look at projects that have been in operation for 20, 30 years, and we will not renew them under the same conditions. Times change, desires change. Even the Mozambican population has changed. Today, there are more than 30 million of us,” said Chapo.

Meanwhile, one of the gas exploitation projects that will begin during Chapo’s term in office is TotalEnergies’, in Palma district. The resumption of works was promised for the middle of this year, and Chapo says that it is up to Total to lift the force majeure edict and resume activities.

“The focus must be on lifting the force majeure. It is important to clarify that it was not the government who imposed the force majeure [clause], it was Total. It is Total’s responsibility to lift the force majeure. It is true that, as a government, we also have our part to play, because everything has to do with security. If the force majeure is lifted, combined with what we are doing, we will move forward with the project,” Chapo explained.

On the economy front, the president was also asked how he found the state’s coffers, since the previous government reported that there was a lack of money to cover various public expenses, including paying overtime to teachers and doctors and servicing the debt, which left many payments unpaid in 2024. The overdue debt servicing was regularized and overtime payments began to be made shortly after Daniel Chapo took office.

The Head of State replied that “it is a matter of management. The state works like our home. As a father, he may have several expenses, but he sets priorities, and sometimes there is no money, we have to set priorities for priorities. That is how we started paying the public debt and paying overtime. That is how we will continue to do it”.

No less important was the “dossier” on terrorism in Cabo Delgado. The President of the Republic said that there were no signs of terrorism in the province of Niassa, and the situation is now confined to the north of the province of Cabo Delgado. According to Daniel Chapo, the countries helping to combat the phenomenon will remain in place until the “fire” is controlled.

Chapo spoke of efforts to resolve the problem and said that, in addition to fighting on the ground, there is a need to identify the structure of the groups and create lines of dialogue.

When asked how long the foreign troops would remain in the country, Chapo replied that “there has to come a perfect time, when we will say thank you very much and we will be able to continue on our own. After putting out the fire, the neighbours will return to their homes and we will rebuild ours,” he said.

Chapo clarified Tanzania’s participation, which is the result of a bilateral defence and security agreement.

The statements were made this Sunday at a press conference in the Presidency of the Republic, held as part of the celebration of the 50th anniversary of National Independence.

Source: O País