Maputo, Mozambique, 19 July – The World Bank has granted a loan of US$ 93 million to Mozambique and Malawi to improve power distribution networks and provide low-cost energy in Southern Africa, officials said.
The financing is for a 40-year period and will be channeled via the International Development Association.
Mozambique will receive US$ 45 million and Malawi US$ 48 million to build a new power line from Malawi to South Africa through Mozambique.
“The link will allow Malawi to import power when necessary, particularly if there is a period of drought, and export energy at night,” said Wendy Hughes of the World Bank.
Mozambique will build a 135-kilometer stretch of power lines to carry the new link and upgrade an existing substation at Matambo in Tete province.
Malawi will construct 75 kilometers of power cables and build a 220 KW distribution station.
The World Bank says its financing to the two African states is part of an international strategy to combat energy shortages in countries like Mozambique and Malawi, which are heavily dependent on hydroelectric energy. (macauhub)