China Exim Bank grants loan for hydroelectric dam in Mozambique

21 April 2006

Maputo, Mozambique, 21 April – The Mozambican government has signed an agreement with China’s Exim Bank to be granted a loan to finance the construction of the Mpanka Nkua hydroelectric dam, Mozambican daily newspaper Notícias reported.

The loan, which totals US$2.3 billion, is also for the construction of the power transmission line linking Tete province to Maputo, a distance of 1,540 kilometers, teh paper said.

Mpanda Nkua is located 60 kilometers downstream of the Cahora Basa hydroelectric dam.

The loan package also includes the Moamba-Major dam that will provide the city fo Maputo with drinking water, and will cost US$300 million.

The loan contract was signed by Energy Minister, Salvador Namburete, and by Exim Bank chairman, Li Ruogu, on Thursday in Maputo.

“The project documents show that six years after construction begins we will have the first turbine supplying electrical power,” Namburete said.(macauhub)