EIB grants loans for study of impact of power transmission from Tete to Maputo in Mozambique

13 August 2010

Maputo, Mozambique, 13 Aug – The European Investment bank (EIB) is to grant Mozambique a loan of 700,000 euros to carry out an environmental impact study of the project that includes construction of a power transmission line linking the provinces of Tete, in central Mozambique, and Maputo in the south, Mozambican newspaper Notícias reported Friday.

According to the paper the line will be approximately 1,300 kilometres long and should start operating in 2016.

On Thursday electricity company EDM and the EIB signed a contract to finance the project and now consultants to carry out the studies will be hired, in a process that is due to be concluded by February 2011.

David White, the EIB representative for Southern Africa and the Indian Ocean said once the document had been signed, that the bank had approved a loan of 45 million euros to fund power distribution in cities, towns and villages across Mozambique.

At the beginning of the year the EIB announced a loan of 104 million euros to Mozambique for the same purpose.

Augusto Sousa of EDM said, in his turn, that the funding now granted would be used to carry out a strategic study of the environmental impact of the various power generation projects in Mozambique, namely the Mphanda Nkuwa hydroelectric facility, the Benga power plant and the Northern Plant of the Cahora Bassa dam .

“The feasibility studies that are underway will give us a more precise idea of the real cost of the line. However, we have preliminary data that points to an indicative cost of some US$2.4 billion,” said Sousa. (macauhub)