The percentage of the Concession Fee paid to the Mozambican State by the Cahora Bassa Hydroelectric Plant (HCB) will increase to 70%, according to a decision taken by the Government of Mozambique through a decree to which Lusa had access today.
According to decree 41/2023, approved by the Council of Ministers on 7 July and which has already entered into force, the Government defends the need to “review the revenue consignment regime”, provided for in legislation, now repealed, of 2009, regarding the consignment of the HCB Concession Fee, “following the reversion and transfer of the same to the Mozambican State, in order to increase revenues for the Public Treasury, as well as update the beneficiary institutions”.
The value of the HCB Concession Fee, paid monthly, will be allocated 70% to the Mozambican State Budget and 24% to the Energy Fund (Funae). There are also instalments of 2% for the Energy Regulatory Authority (ARENE), up to the limit of its operating budget, 2% for development agencies and another 2% for regional water administrations.
In the legislation previously in force, of March 2009, the Government had set the value of the Concession Fee transferred to the State Budget by the hydroelectric plant at 60%, 35% to Funae, 2.5% to the Zambezi Development Plan Office, and 2.5% to the National Electricity Council.
HCB is majority-owned by the Mozambican state and has been ranked as the Mozambican state-owned company with the best financial health — the only one in ‘category 1’, i.e. with “very low risk” of failing commitments, according to an October 2022 analysis by the Centre for Public Integrity (CIP), a Mozambican non-governmental organisation.
According to the financial statements, HCB handed the state about 239 million meticais (€3.4 million) in concession fees in 20
