Sale of Portugal’s stake in Cahora Bassa Hydroelectric agreed with Mozambique

8 March 2010

Maputo, Mozambique, 8 Mar – The governments of Portugal and Mozambique have agreed on terms for the sale of the Portuguese state’s 15 percent stake in the Cahora Bassa Hydroelectric dam.

The note of understanding on transferring Portugal’s stake in Cahora Bassa Hydroelectic (HCB) was signed on Friday by Mozambican Energy Minister Salvador Namburete and by the Portuguese State Secretary for Treasury and Finance, Carlos Pina.

Namburete said that two companies, one named by the Portuguese government and the other by the Mozambican government, would each buy half of the Portuguese stake, or 7.5 percent of HCB.

Mozambique put forward Companhia Eléctrica do Zambeze (Ceza), while Portugal’s choice was REN — Redes Energéticas Nacionais.

Ceza is a subsidiary 100 percent owned by the state-held Electricidade de Moçambique, while REN’s number one shareholder is the Portuguese state.