Mozambique’s debt relating to Cahora Bassa is being settled “in advance”

4 August 2009

Maputo, Mozambique, 4 Aug – The debt taken on by Mozambique to pay Portugal the amount resulting from the restructuring of the Cahora Bass Hydroelectric Dam (HCB) is being paid “in advance,” said Mozambique’s Energy minister Monday.

The Mozambique government had to resort to a loan of around US$700 million from the consortium made up of French bank Calyon and Banco Português de Investimento (BPI) to pay Portugal for the purchase of the 82 percent majority stake it held in HCB, one of the world’s biggest hydroelectric power plants.

The money is part of the overall total of US$950 million Portugal demanded to concede its majority stake in HCB, in Tete province in the country’s central region, to Mozambique.

Speaking in Gaza province, in southern Mozambique, at an Energy Ministry meeting, Energy minister Salvador Namburete said that the debt was being paid “in advance” but again, did not reveal the expected date on which the debt would be completely settled.

The minister did say, however, that at the current pace, the debt could be paid off before the period agreed with the banking consortium. (macauhub)