Power purchase agreements for Mphanda Nkuwa, Mozambique, concluded this year

25 January 2010

Maputo, Mozambique, 25 Jan – Negotiation of long term power purchase agreements (PPAs) for the sale of electricity produced at the Mphanda Nkuwa hydroelectric facility in Mozambique, is due to be concluded this year, Mozambican newspaper Notícias reported.

Citing an unnamed source from Sociedade Hidroeleéctrica de Mphanda Nkuwa (HMNK) the paper said that negotiation with purchasers was being carried out alongside additional engineering surveys and the environmental impact study, which began in 2009.

The Mphanda Nkuwa dam will be built 70 kilometres upstream of the city of Tete and 61 kilometres downstream of the similar Cahora Bassa dam and will have installed capacity of 1500 megawatts.

Taking into consideration the need to transport energy to the couth of the country, the consortium responsible for carrying out the project is contributing to the centre-south transmission line that will link the provinces of Tete and Maputo.

The Tete-Maputo line will be a vital link for power distribution in Mozambique and the region, via a link to the Southern Africa Power Pool (SAPP).

In 2009 the first stage of preparation of the project was concluded, with the approval from the Ministry for Coordination of Environmental Action of the environmental pre-feasibility study and definition of scope, carried out by the companies, Coba and Impacto.

Brazilian construction company Camargo Corrêa is responsible for the building project, which has an initial estimated cost of US$2 billion and is due to be concluded in 2015. (macauhub)