Sao Paulo, Brazil, 25 March – Brazilian construction company Camargo Corrêa is due to start work on building the Mphanda Nkuma dam, in Mozambique, in July 2009, according to a contract signed with the Mozambican authorities.
The Mphanda Nkuma dam, located on the Zambezi river, 60 kilometres downstream of the Cahora Bassa dam, in Tete province, will require an investment of US$3.2 billion and have a production capacity of some 1,500 MW of electricity.
The Cahora Bassa dam has a capacity of around 2,075 MW.
The contract signed with the Mozambican government sets out that the Brazilian construction company will be responsible for the design, execution of the work and possibly the operation of the dam.
It is also Camargo Corrêa’s responsibility to find international investors interested in being involved in the project, which is due to be concluded in 2013.
Camargo Corrêa is in the final stages of contracting an international bank to coordinate the financial operation.
The news was reported by Brazilian newspaper Valor Económico which said that Kalil Cury, the company’s International Business Development Manager, is due to arrive this week in Maputo to discuss the details of the project with the Mozambican authorities.
The paper also said that the contract also included construction of a 1,400 kilometre transmission line linking the dam to the capital of Maputo.
According to Valor Económico, around 1,000 MW will be exported to countries in the Southern Africa Development Community (SADC), namely South Africa.
The Brazilian construction company is part of a consortium that includes Mozambique’s Electricidade de Moçambique (EDM) and Energia Capital.
Cury said in his interview with Valor Económico that Camargo Corrêa planned to take on a strategic partner for this project and mentioned Brazilian companies CPFL Energia and Electrobras, Belgium’s Suez and US company AES as potential partners. (macauhub)