Maputo, Mozambique, 03 Nov – The President of Mozambique, Armando Guebuza, Wednesday nominated two Mozambicans to the board of directors of the Cahora Bassa Hydroelectric Dam (HCB), which in this transitional phase will have nine members, five of which are Portuguese, officials said.
The two new directors of HCB are Paulo Muchanga, a former minister of Transport and Communications who, until now, headed the country’s road management company, and Gildo Simbunde, a former director of state electricity company, Electricidade de Moçambique.
HCB is currently heade by Portugal’s, Joaquim da Silva Correia.
The nominations were made in order to tailor the board of directors to a transitional phase for the company which began Tuesday with the signing of an agreement between Portugal and Mozambique to transfer a majority stake of HCB to the East African country.
In return Mozambique shall pay Portugal US$950 million and when that payment is made it will take over management of the company.
Portugal will then have two directors, out of nine, on HCB’s board, and will also nominate the president of the General Meeting and the Audit Commission, for four years.
After that time, if Portugal keeps its 15 percent shareholding, it will continue to have two directors and, if it reduces that share to 10 percent, will keep one director. (macauhub)