Mozambican government signs concession contract for Mphanda Nkuwa hydroelectric project

27 December 2010

Maputo, Mozambique, 27 Dec – The Mphanda Nkuwa Hydroelectric Facility (HMNK) is to build and operate a hydroelectric dam on the Zambezi river under the terms of a concession contract signed Friday in Maputo with the Mozambican government.

Unlike previous agreements, which were of a provisional nature, the contract that has now been signed establishes definitive rights and obligations for both the Mozambican state and the HMNK company, which will be able to negotiate contracts for the sale of the electricity that it will produce.

HMNK is a consortium made up of three partners, Brazilian construction group Camargo Corrêa and Mozambique’s Insitec, both with 40 percent of shares, with the remaining 20 percent in the hands of state electricity company Electricidade de Moçambique (EdM).

The project includes construction of a run-of-river hydroelectric dam, some 61 kilometres downstream of the Cabora Bassa hydroelectric dam, which will initially have an installed capacity of 1,500 megawatts, via four turbines with an individual capacity of 375 megawatts.

The chairman of HMNK, Egídeo Leite, said that construction of the dam was estimated to cost US$2.9 billion, and could begin at the end of 2011 or beginning of 2012 and take four to five years.

Construction of this dam is still dependent on attribution of an environmental license issued by the Ministry for Coordination of Environmental Action, and an environmental impact assessment is at an advanced stage and due to be concluded by July, 2011. (macauhub)