Chinese group State Grid Corp. to set up partnerships win Angola and Mozambique with Portugal’s REN

3 February 2012

Lisbon, Portugal, 3 Feb – The sale of 25 percent of Portuguese power grid company REN – Redes Energéticas Nacionais to China’s State Grid Corp. will lead to the creation of two partnerships in Angola and Mozambique, shared equally by the Portuguese company and the Chinese group, the secretary of state for the Treasury and Finances said in Lisbon Thursday.

At the end of the Council of Ministers meeting that approved the sale of 40 percent of the state’s stake to the Chinese group and to Oman Oil, Maria Luís Albuquerque said that the two partnerships as well as three joint investment projects for transmission lines in Brazil was one of the commitments made by State Grid Corp. in its acquisition proposal.

As well as identifying the three Brazilian projects State Grid also committed to hire REN’s technical assistance in Brazil where the Chinese company is already present.

In terms of Africa, REN had already been looking towards Mozambique given the possibility of it acquiring half of the 15 percent stake owned by the Portuguese state in the Cahora Bassa hydroelectric facility and the opportunities available in the development of the Mozambican transmission grid.

The Chinese market may also be explored by REN, although decisions have yet to be made about that aspect of the Chinese-Portuguese partnership.

During the process of assessing the proposals received from State Grid and from Oman Oil there were suggestions that the Middle Eastern company had only committed to include REN in investment projects in the Oman electricity grid, although there has been no confirmation of a specific project. (macauhub)