The director of the Mphanda Nkuwa project office, Carlos Yum, said this Monday, 11 March, during a lecture to students at the Pedagogical University (UP-Maputo), that he expects the hydroelectric plant to start operating in 2031.
“We expect the project to be in operation by 2031. It will take five to six years to build the hydroelectric plant, because it has two infrastructures: one is the hydroelectric plant, and the other is the high-voltage transmission line between Tete and Maputo, of between 1,350 and 1,400 kilometres,” he said.
On the same occasion, Mr Yum explained that the country expects to close the financing for the implementation of the project by the end of the year. “At the moment, we’re dealing with the specifics of the expressions of interest in financing the project. We can say that things are going well.”
The source also said that there was “a strong appetite from various development finance institutions to finance the project”.
Of the total amount of five billion dollars (4.5 billion euros) needed to build the infrastructure, 1.3 billion dollars (1.1 billion euros) will be disbursed by the consortium that will manage the project and the rest by financial institutions that will ensure financial closure by the end of this year.
“The size of the project requires institutions with financial capacity,” he said, adding: “it’s a critical undertaking for the energy transition strategy, given that the hydroelectric plant will be fuelled by a renewable source, which is water.”
The director of the project office pointed out that the construction of the infrastructure has taken into account the dimensions of environmental, social, economic and financial sustainability, based on the interaction that has taken place with all the relevant parties, including the communities in the region where the project will be built.
Carlos Yum noted that the infrastructure will contribute to Mozambique’s energy inclusion policy and will increase a surplus capable of consolidating the country’s position as a major energy exporter in southern Africa.
Last December, the Mozambican government and a consortium led by Electricité de France (EDF) signed agreements for the implementation of the Mphanda Nkua 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 own 70 per cent of the hydroelectric plant.
Representing the Mozambican state, Hidroeléctrica de Cahora Bassa (HCB) and Electricidade de Moçambique (EDM) hold the remaining 30 per cent. But even with the start-up of Mpanda Nkua, HCB will remain the largest in the country, with a current production capacity of 2075 MegaWatts.
