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Mozambique: EDM given greenlight to acquire 70/% of new hydro-project – Lusa
11:27 CAT | 13 Sep 2024
Image: Notícias
The Mozambican government on Thursday approved a resolution authorising state-owned power utility Electricidade de Moçambique to acquire 70% of the Mphanda Nkuwa Hydroelectric Plant, a project budgeted at 5 billion dollars (4.5 billion euros), an official source said yesterday.
“This is the first step, in which EDM is authorised to acquire the shares of the other shareholders, and all of the other steps will occur at a subsequent time”, declared Filimão Suaze, spokesperson for the Council of Ministers, in statements to the media after the 27th ordinary session of the body, in Maputo.
It is expected that the financing guarantees for the construction of the Mphanda Nkuwa Hydroelectric Plant in Mozambique, budgeted at 4.5 billion euros, will be secured by the end of this year, said the director of the project office, Carlos Yum, told the media in May, in Maputo.
“At the moment, we are dealing with specific matters regarding the expressions of interest in financing the project. We can say that things are going well,” Yum said, speaking to journalists, on the sidelines of a talk with students at the Pedagogical University.
READ: Mozambique: $5B for Mphanda Nkuwa hydropower plant assured by year’s end – official
On the occasion, Carlos Yum stated that of the total amount of five billion US dollars (4.5 billion euros) needed for the construction of the infrastructure, 1.3 billion dollars (1.1 billion euros) will be disbursed by the consortium that will operate the project and the remainder by financial institutions that will ensure the “financial closure” by the end of this year.
“The size of the project requires institutions with financial capacity,” Carlos Yum added at the time. The government’s plan foresees that the hydroelectric plant will take five years to build, with the infrastructure expected to begin operating in 2031.
The project will consist of a hydroelectric plant with a production capacity of 1,500 MegaWatts (MW) and a high-voltage transmission line measuring 1,350 to 1,400 kilometres, which will run from Tete, in central Mozambique, to Maputo, in the south.
“It is a critical project for the energy transition strategy”, given that the hydroelectric plant will be powered by a renewable source, which is water, added Yum at the time.
The director of the project office pointed out that the construction of the infrastructure takes into account the dimensions of environmental, social, economic and financial sustainability, based on interaction with all relevant parties, including the communities in the region where the project will be built.
READ: Mozambique: Mphanda Nkuwa project still dependent on environmental studies
Carlos Yum was reacting to concerns expressed by some environmental organizations who oppose the Mphanda Nkuwa Hydroelectric Plant, which will be built 61 kilometers downstream from the Cahora Bassa Hydroelectric Plant (HCB), built before the country’s independence.
Even with the start of operations at Mpanda Nkwua, HCB will continue to be the largest in the country, with a current production capacity of 2,075 MW.
In December 2023, the Mozambican government and a consortium led by Électricité de France (EDF) signed agreements for the implementation of the Mphanda Nkwua Hydroelectric Project.
In addition to EDF, the international consortium is made up of the French oil company TotalEnergies and the Japanese Sumitomo Corporation, which jointly hold 70% of the hydropower plant.
Representing the Mozambican state, the remaining 30% are held by the Cahora Bassa Hydroelectric Plant (HCB) and Electricidade de Moçambique (EDM).
READ: Mozambique’s EDM, HCB agree on funding Mphanda Nkuwa hydropower project
Source: Lusa
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