Mozambique: Electricity production at Mphanda Nkuwa under negotiation with South Africa’s Eskom

20 October 2008

Maputo, Mozambique, 20 Oct – The first negotiations between the consortium that will build the Mphanda Nkuwa hydroelectric facility and South African state company Eskom have already taken place, Mozambican daily Notícias reported.

The paper said that aspects including methods of supplying electricity were under discussion although no details have yet been given of discussions between the consortium made up of Electricidade de Moçambique (EDM), Energia Capital (Mozambique) and Camargo Corrêa (Brazilian construction firm) and Eskom, which is expected to be the most important customer for the electricity produced at the dam.

Work to build the dam is expected to cost US$1.65 billion, and it is designed to produce 1,500 megwatts (MW) of electricity. The project is considered to be a lifeline for various countries in the Southern Africa Development Community (SADC), which currently run on an energy deficit, including Mozambique and South Africa.

In relation to Mphanda Nkuwa, according to the director of Camargo Corrêa Moçambique, Luiz Augusto Rosa Gomes, the project is at the financial structuring stage, which is expected to be concluded by the end of 2009 when building work is scheduled to begin.

“We are also at the stage of drawing up the environmental and engineering project and have begun discussions with partners, in this case, Eskom,” Rosa Gomes told the newspaper on the sidelines of a business seminar held Thursday as part of a visit by Brazil’s President, Luiz Inácio Lula da Silva, to Mozambique. (macauhub)