Maputo, Mozambique, 19 May – The China Exim Bank plans to fund the construction of Mozambique’s Mpanda Nkuwa hydroelectric facility, which is to be built downstream of the Cahora Bassa dam, Mozambican newspaper O País reported citing the country’s Energy Minister.
The paper said that the dam had an estimated cost of US$2 billion and added that the US$2.3 billion loan granted by the China Exim Bank included construction of a transmission cable to Maputo.
Citing Energy Minister Salvador Namburete, O País reported that the excess electricity generates at the 1,350 megawatt dam, construction of which is due to begin in 2010, will be exported to member countries of the Southern Africa Development Community (SADC).
“We expect to conclude negotiations for the contract with Electricidade de Moçambique and other customers next June and then finalise financial contracts,” said Namburete, adding that the entire process was expected to be concluded by the end of the year, “with construction of the dam able to begin between April and May of 2010.”
The Mpanda Nkuwa dam will be built 60 kilometres downstream of the Cahora Bassa dam and the Mozambican government expects that its construction will allow industries that require high levels of electricity to invest in Mozambique. (macauhub)