Mozambique to pay Cahora Bassa debt to Portugal this year, minister says

11 October 2007

Brasilia, Brazil, 11 Oct –Mozambique’s minister for industry, Salvador Namburete, said Wednesday in Brasilia that the debt of US$700 million to Portugal relating to the Cahora Bassa Hydroelectric Dam (HCB), would be paid this year.

“Cahora Bassa will stay with the Mozambicans and there is not long to go. We have committed to paying the Portuguese government by December 31 and that debt will be paid soon,” he said.

Namburete told Portuguese news agency Lusa that an agreement would be signed soon between the Mozambican government and French bank Calyon, in association with Portuguese bank BPI, which won a public tender launched in February, for the payment of US$700 million to Portugal.

Namburete was speaking to Lusa on the sidelines of II Enerbio, an event held between October 9 and 11 in Brasilia, which includes an international conference on biofuel.

Last month, during a visit by Mozambican president Armando Guebuza to Brasilia, Mozambique and Brazil signed an agreement to implement a cooperation plan in the area of renewable fuels.

Namburete called on Brazilian business owners to invest in Mozambique, noting that his country had a good climate, a lot of water, 36 million hectares of arable land and another 41 million hectares that could be improved, as well as good conditions to receive foreign investment. (macauhub)