Mozambique: Public-private partnerships on the red, shows 2018 State Account

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Mozambique: Public-private partnerships on the red, shows 2018 State Account

8:11 CAT | 14 May 2020

File photo: MMO

Public-Private Partnership category ventures in Mozambique lost about 8.5 billion meticais in 2018, the General State Account for that year shows.

Some companies, in the period under review, posted cumulative positive results of around 10.6 billion meticais. These include the ports of Maputo and Beira, National Road Number 4 (TRAC), Estrada do Zambeze, Gestão de Terminais, Cahora Bassa Hydroelectric ,Central de Ressano Garcia Gigawatt , Gigawatt Thermal Power Plant, MCNET and Optical Security.

“In contrast, the remaining projects, namely the Northern Development Corridor, the Nacala Integrated Logistics Corridor, the Port and Logistics Terminals of Pemba and Palma and FIPAG presented negative net results of a global value of 19,090 million meticais,” the 2018 General State Account indicates.

According to the document, public-private partnership ventures generated around 15.6 billion meticais of revenue for the state in 2018, against a contribution of about 16.5 billion from the previous year, 2017, a fall of 5.4%.

Of the amount collected in 2018, about 7 billion meticais resulted from the collection of concession fees, 3.2 billion from corporate tax (IRPS), about 1.6 billion from single income tax (IRPC), 1.6 billion from VAT and 1.4 billion and 811 million meticais from the payment of dividends and other taxes respectively.

Contribution of large projects and concessionaires falls

Contribution from the Large Projects and Business Concessions category enterprises fell by 3.7% in 2018 compared to 2017. These companies channelled about 10.6 billion meticais to state coffers in 2018, the equivalent to 5% of the total state revenue.

Of this amount, about 2.4 billion meticais are due to the payment of IRPS, about 3.4 billion meticais are derived from IRPC and about 217.7 million meticais from VAT. About 2.4 billion are due to the payment of royalties, 371.5 million to the payment of dividends and about 1.8 billion to other taxes.

EMOSE did not pay dividends to the state in 2018

Having recorded losses in the 2017 financial year, the Mozambican Insurance Company (EMOSE) failed to pay any dividends to the Mozambican state the following year, either.

The dividend paid to the state by the Bank of Mozambique was the highest of all, reaching about 3.1 billion meticais in 2018. Although this is the highest dividend of the year, it was less than the 2017 payment of about 8 billion Mt.

“The Bank of Mozambique stands out with a contribution corresponding to 75.7% of total revenue, the remaining sectors contributing between the ranges of 0.1 to 8.9%,” the General State Account for 2018 details

Exim Bank China finances Maputo Sul with 6.8 billion meticais

Total finance from the Chinese bank (7805.1 million meticais) was allocated to three projects, namely the Maputo Sul Company (6835.8 million meticais), the Maputo-Catembe bridge and the Catembe/Bela Vista/Punta do Ouro road.

Of the global Exim Bank amount, 625 million meticais was allocated to the National Road Administration for the rehabilitation of the EN6 (Beira-Machipanda section), plus 344.3 million meticais for the rehabilitation of the Beira Fishing Port Pier.

By Clemêncio Fijamo

Source: O País