Mozambique: Cahora Bassa pays taxes to Mozambican state

28 April 2008

Maputo, Mozambique, 28 April – The chairman of the board of the Cahora Bassa Hydroelectric (HCB), Paulo Muxanga told journalists that in the last four months the company had paid 250 million meticais (US$10.3 million) in taxes to the state.

According to Muxanga, this is the result of the change in shareholder structure of the company, with Mozambique now owning 85 percent of shares and Portugal the remaining 15 percent. When Portugal owned 82 percent of shares no taxes were paid to the Mozambican state.

Most of the payments made by HCB to the state coffers relate to the concession contract signed with the government to operate the plant under the terms of which the company has to pay 10 percent of its gross revenues.

In 2007, sales and exports of energy generated revenues of US$150 million, and this amount is expected to rise as the dam is operating close to its maximum capacity.

HCB is selling 1,350 megawatts of electricity to South Africa’s Eskom, 400 megawatts to Empresa de Electricidade de Moçambique, 200 megawatts to Zimbabwe’s ZESA and between 35 and 40 megawatts to Botswana, with Sales thus totalling around 1,990 megawatts, which is close to the maximum capacity of 2,075 megawatts produced by the dams five turbines. (macauhub)