Companies from Mozambique and Portugal join forces to expand Mozambican electricity network

13 July 2010

Maputo, Mozambique, 13 Jul – Electricidade de Moçambique (EdM) and Portugal’s REN national energy network utility signed on Monday in Maputo a protocol to set up a company for investment projects related to expansion of the Mozambican power network

The Mozambican press reported that the protocol sets the business basis for implementation of the Cesul project, which envisages creation of a power transmission line linking Tete and Maputo provinces with a length of about 1,400 km – an investment estimated at US$1.7 billion.

EdM president Manuel Cuambe said after signing the document that the two companies (eventually to be joined by third parties) will identify technical, contractual and financial solutions that guarantee the conception, financing, construction, installation, operation and maintenance of the Cesul project.

The partnership with REN complements other actions being developed, such as the signing of a technical cooperation protocol for development of the same project with the Brazilian company Electrobras, Cuambe said.

“Financing of US$100 million from the World Bank and 500 million Norwegian kroner is already guaranteed for EdM’s participation in the share capital of the future company that will implement the project,” he added.

Under terms of the Monday agreement, two electric power transmission lines will be built, one for 800 kV between the Matabo substation in Tete and the Maputo substation, and another for 400 kV from the Songo substation, also in Tete, to Maputo. (macauhub)