Mozambique: World Bank awaits government request for Mphanda Nkuwa financing – Carta

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Mozambique: World Bank awaits government request for Mphanda Nkuwa financing – Carta

2:42 CAT | 28 Sep 2022

FILE - Illustrative photo. [File photo: Notícias]

The World Bank says it is awaiting a formal request from the Government of Mozambique regarding financing for the Mphanda Nkuwa Hydroelectric Project, valued at around US$5 billion. The project is crucial for the realisation of the executive’s objective of guaranteeing energy for all by 2030.

“We are currently awaiting a formal request from the government. But, overall, we think this project is very important to the government’s goal of universal access by 2030,” said Zayra Romo, World Bank Mozambique Lead Energy Specialist and Infrastructure Practice Leader.

Romo was speaking on the sidelines of the meeting with the project’s seven potential Strategic Investors organised by the government, represented by the Mphanda Nkuwa Hydroelectric Project Implementation Office (GMNK),.

READ: Mozambique completes prequalification of investors for 4.5-bln-USD hydroelectric project

According to Romo, after the formal request, two other phases will follow before the funds become available.

“After the request, we proceed with the due diligence, then it is taken to the board of directors, who decides if the financing can be provided. But the first step is to have the formal request,” the World Bank representative explained.

As for the current stage of the project, which consists of the search for a strategic partner for the development of Mphanda Nkuwa, Romo said that the World Bank’s support would consist of ensuring the greatest possible competitiveness for the project, with a view to selecting the “best contractor or investors that have experience” to run Mphanda Nkuwa.

READ: Mphanda Nkuwa project: Potential investors working on finishing touches – AIM report

The director of the Mphanda Nkuwa Hydroelectric Project Implementation Office (GMNK), Carlos Yum, explained that, at the end of the conference, the competitors would, today and tomorrow, visit the province from Tete where the project will be implemented,

This forms part of the ‘Specifications of the Strategic Partner’ selection tender, and aims to acquaint investors with the natural conditions of the project location, this being fundamental to the preparation of the technical, economic and financial proposals responding to the tender.

Yum explained that, after the site visit, the competitors’ representatives would report back to their companies, and GMNK would wait for proposals before selecting the best partner. The preliminary schedule indicates that the selection process will start in August, 2024, with works on the construction of the power station and transmission line starting by December, 2029, and the start of operations expected 2030.

Of the seven pre-qualified competitors, TotalEnergies competes in a consortium composed of itself and EDF SA, both from France. Other competitors are ETC Holdings Mauritius Limited, domiciled in Mauritius and Zambia, Longyuan Power Overseas Investment Co. Ltd and PowerChina Resources Limited, both of China, WeBuild Group of Italy and Zimbabwe, Scatec of Norway, plus Sumitomo Corporation and Kansai Electric Power Co. Inc. from Japan.

By Evaristo Chhilingue

Source: Carta de Moçambique