Cahora Bassa process to be concluded within deadline, minister says

16 August 2007

Mecúfi, Mozambique, 16 Aug – Mozambique’s Energy Minister, Salvador Namburete, said Wednesday in Mecúfi that the process for taking a majority stake in the Cahora Bassa Hydroelectric Dam (HCB) would be concluded within the given deadline.

Namburete, who leads the III Coordinating Council of his ministry, taking place in the district of Mecúfi, in Cabo Delgado province, noted that the process of financing the acquisition was progressing in a satisfactory way.

Mozambique owes Portugal US$700 million due to a change in the shareholder structure of HCB in which the Mozambican state’s stake has risen from 18 to 85 percent. In May the government chose the Calvon/BPI banking syndicate to finance the deal.

Namburete also said that his country’s energy strategy needed to be adapted to the current situation, which includes realities that had not been considered previously, such as the development of biofuels, as well as the implementation of mega-projects for energy production..

“We are working within this framework with potential foreign investors, associated into consortia with national entities, on analyzing proposals for a development plan to implement the Mpanda Nkuwa hydroelectric project, recent studies for which showed it would have an initial installed capacity of between 1,300 and 1,500 megawatts, as a result of technological advances achieved in the sector over the last few years,” he said.

He also said that the government continued to have great expectations for the Temane combined cycle natural gas power plant to be built on schedule. (macauhub)