Construction project for Mpanda Nkuwa dam handed over to Mozambican government

28 September 2007

Maputo, Mozambique, 28 Sept – The consortium of Brazilian construction company Camargo Corrêa Thursday handed to the Mozambican government the final proposal for the construction of the Mphanda Nkuwa dam in the Zambezi valley, a project valued at US$1.6 billion.

The proposal was delivered at a ceremony attended by the Mozambican ministers of Finance, Manuel Chang, Energy, Salvador Namburete as well as Brazil’s ambassador to Mozambique.

The consortium, made up of Camargo Corrêa and Mozambique’s Energia Capital als announced it was using project finance for funding the project.

China’s Eximbank, has been pointed to as being the project’s financer. The dam will have a 1,500 megawatt capacity as compared to the Cahora Bassa dam which has a capacity of 2,075 megawatts.

Jivá Remtula representing Energia Capital said that “it has not yet been defined who will finance” the project but added that, “there are several banks that have shown formal interest,” although he declined to say which banks they were.

Mozambican Energy minister, Namuburete said at the ceremony that ä further five dam” could be built along the Zambezi river.

The Mpanda Nkuwa dam will be built 60 kilometers downstream of the Cahora Bassa dam and work on it is scheduled to begin in 2009 and end in 2013.

The proposal also includes construction of a 1,400 kilometer power transmission line to Maputo in the far south of the country, which is expected to cost US$2.3 billion.

The Mphanda Nkuwa dam is intended to supply surplus power to other countries in the Southern Africa Development Community (SADC).

Mozambique has just 12 medium-sized and large dams, which are not enough to meet its increasing needs and to minimize the effects of the droughts and flooding to which the country is susceptible. (macauhub)