Portugal to make decision in November on sale of 15 pct stake in Cahora Bassa dam, Mozambique

26 September 2011

New York, United States, 26 Sept – A decision on the sale of the 15 percent stake still owned by the Portuguese state in the Cahora Bassa Hydroelectric Facility (HCB) is scheduled to be made at the next Portugal/Mozambique summit meeting, Portugal’s prime minister said in New York.

At the end of a meeting with Mozambique’s President Armando Guebuza, on the sidelines of the United Nations General Assembly, Pedro Passos Coelho gave assurances that the matter would be dealt with this year, when the two countries meet in November in Lisbon for their bilateral summit, according to Mozambican news agency AIM.

In 2006, Portugal and Mozambique signed a deal to transfer part of HCB’s capital to Mozambique, which ended up with an 85 percent stake, whilst Portugal held on to the remaining 15 percent compared to 82 percent previously.

In exchange Portugal received US$250 million directly from the company and, later, US$700 million following a loan agreement signed by the Mozambique government and a banking syndicate made up of Portuguese bank BPI ad France’s Calyon. (macauhub)