Mozambique: Seven African heads of state to meet in Songo for Cahora Bassa handover

13 November 2007

Maputo, Mozambique, 13 Nov – Seven southern African heads of state are expected to travel to Songo, in Mozambique’s Tete province on November 27 to take part in the ceremony to hand over management of the Cahora Bassa Hydroelectric Dam (HCB) to Mozambique.

Maputo’s NOtícias newspaper reported that as well as the Mozambican president, Armando Guebuza and Portuguese prime minister José Sócrates the executive secretary of the Southern African Development Community (SADC), Tomaz Salomão had confirmed his presence.

On October 30 Mozambique notified the Portuguese government that conditions were set up to conclude the process of changing the shareholder structure of the Cahora Bassa Hydroelectric Dam (HCB).

The agreement reached between the partied set out that by October 31 Mozambique had to notify Portugal of its ability to conclude the deal, negotiations for which took several decades.

Under the terms of the deal Mozambique will have to pay US$950 million for a 67 percent stake in HCB, US$250 million of which were paid on the day the deal was signed.

After the final payment of US$700 million Mozambique will have an 85 percent share of HCB (as compared with the current 18 percent), with Portugal keeping a 15 percent stake (as compared with 82 percent), with a commitment from Portugal to sell off five percent of its shares to a buyer indicated or approved by Mozambique. (macauhub)