Mozambique: Brazil’s Camargo Correa seeks finance to build Mpanda Nkua dam

6 August 2008

Maputo, Mozambique, 6 Aug – Brazilian construction group Camargo Correa has signed a deal worth US$ 3.2 billion to build a hydroelectric dam at Mpanda Nkua on the River Zambezi, says Mozambican Minister of Planning and Development Aiuba Cuereneia.

The minister said the Brazilian firm would be responsible for building the dam and could also operate its infrastructures. Construction is expected to begin within a year, he added.

“We want the building of the dam to start by July at the latest next year as part of our strategy to meet the energy needs of Mozambique and the region,” local media cited the minister as saying.

Brazil’s ambassador to Maputo, Antonio Sousa e Silva, told Mozambican state radio that Camargo Correa is “mobilizing the financial, material and human resources needed” to begin the dam project, situated 60 kilometers downstream of the huge Cahora Bassa generating plant.

The new dam, scheduled for completion in 2013, will have a 1,500 megawatt capacity, around 1,000 megawatts of which will be sent to South Africa. A 1,400 kilometer high-tension transmission line will also connect the dam to Maputo.

Camargo Correa’s consortium includes two Mozabican energy firms, EDM and Energia Capital. The Brazilian group is also seeking a “strategic partner” for the venture, such as CPFL Energia and Electrobras from Brazil , Suez of Belgium or AES of the United States. (macauhub)