Mozambique and China agree financing for dam in Moamba

20 March 2007

Maputo, Mozambique, 20 March – The government of Mozambique is set to sign an agreement with China for the construction of a hydroelectric dam in the Maputo region costing US$300 million, according to South Africa’s Independent Online.

Mozambique’s minister of Public Works and Housing, Felicio Zacarias, said that China’s Eximbank had agreed to finance the preliminary studies for the dam project, located in the Moamba district, which will make it possible to improve the supply of water and electricity to the capital.

The Mozambican minister also said that the project could have more help from China, but declined to give further details.

“We are in the final phase of discussions and we hope that China will finance and build the dam,” Zacarias said.

The town of Moamba is located 75 kilometers north of Maputo.

The Mozambican authorities had announced in 2006 that the Eximbank would invest US$2.3 billion in building the Mpanda Nkua dam and a 1,300 megawatt hydroelectric power plant on the Zambeze river downstream of the Cahora Bassa dam.

At the time officials also said contacts had been made with China about the Moamba dam.

The Cahora Bassa dam produces 2,075 megawatts of power, which makes it possible for Mozambique to export US$100 million in electricity every year.

The Mozambican government, according to the Independent Online, also plans to increase the capacity of Cahora Bassa by over 850 megawatts.

Zacarias also announced that the Mozambican government planned to build several new dams – there are currently 12 – in order for 60 percent of the population to have access to drinking water by 2015. (macauhub)