Mozambican government extends concession contract for Cahora Bassa Hydroelectric Plant

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Mozambican government extends concession contract for Cahora Bassa Hydroelectric Plant

12:35 CAT | 12 Dec 2018

File photo: Lusa

The Mozambican government has approved a decree extending the concession contract for Cahora Bassa Hydroelectric Plant for another 15 years as from 2033, Mozambique’s Council of Ministers announced on Tuesday.

The Cahora Bassa Hydroelectric Plant, managed by the company with the same name, is 92.5%, owned by the Mozambican state, following the reversion agreement signed with Portugal in 2007. The remaining 7.5% is owned by the Portuguese company Redes Energéticas Nacionais.

“With the approval of this decree, the concession term is extended for another 15 years, starting from the date of termination of the current contract,” spokeswoman for the Council of Ministers Ana Comoana said after the body’s 38th session on Tuesday.

Comoana said the extension of the concession would enable the public offering of shares to promote the participation of Mozambican citizens and institutions in the HCB’s operations, as well as facilitating the renewal of hydroelectric systems over the next 10 years at an estimated cost of around EUR 500 million.

In November 2017, the Mozambican head of state, Filipe Nyusi, announced that the Mozambican state would place 7.5% of HCB shares at the disposition of Mozambican citizens and companies on the Mozambican stock exchange.

Located on the Zambezi River in Tete province, central Mozambique, the dam is the largest in Southern Africa. Its construction started in 1969 and operations in 1977. In addition to supplying the Mozambique market, HCB supplies electricity to several other countries in Southern Africa.

Source: Lusa