Mozambique: Brazil’s Camargo Corrêa to build Mphanda Nkuwa dam

25 January 2008

Sao Paulo, Brazil, 25 Jan – Brazilian construction company Camargo Corrêa has been awarded the contract for construction and operation of the Mphanda Nkuwa dam, in Mozambique, Brazilian financial newspaper Valor Económico reported Thursday.

Construction of the dam, with a 1,500 MW capacity and one of the largest in Africa, will begin in 2009, with its conclusion scheduled for 2013, and represents an investment of US$3.2 billion.

The contract also includes construction of a 1,400 kilometer transmission line linking the dam to the capital of Maputo.

The Brazilian construction company is part of a consortium that includes Mozambique’s Electricidade de Moçambique (EDM) and Energia Capital.

An unnamed source from Mozambique’s Energy Ministry told Portuguese news agency Lusa that the government was still in negotiations with the consortium led by Brazil’s Camargo Corrêa for the contract to build the Mphanda Nkuwa dam.

The Mozambican government signed an agreement of principal in September 2007 with the consortium, after approving the project for construction of the Mphanda Nkuwa dam presented by the group, but the respective concession contract has yet to be signed.

“The Mozambican laws for the energy exploration sector are clear: There has to be a concession contract for an energy project to be implemented in the country and that has not happened yet,” a source from the office of Mozambican energy minister, Salvador Namburete, said.

Construction of the dam is expected to be financed by the Export-Import Bank of China (Eximbank). (macauhub)

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