Portugal sells its stake in Cahora Bassa Hydroelectric dam in Mozambique

10 April 2012

The Portuguese State has sold the 15 percent stake it still owned in the Cahora Bassa Hydroelectric Dam (HCB) in Mozambique for US$97 million (74 million euros), said the chairman of state stake-holding company Parpública, which had held the asset in its portfolio.

Half of the stake was sold to the Mozambican State and the remaining 7.5 percent to Portuguese power grid group Redes Energéticas Nacionais (REN), which paid 38.4 million euros, slightly more than Mozambique “due to guarantees given for taking part in projects in the country,” the chairman of Parpública told Portuguese news agency Lusa.

On Monday, the President of Mozambique, Armando Guebuza, and the Portuguese Prime Minister, Pedro Passos Coelho, signed the deal to make official the transfer of 7.5 percent of shares in the Cahora Bassa Hydroelectric Dam that were still in Portugal’s possession.

The signing of the deal was the high point of a two-day visit by Passos Coelho to Maputo, which began Monday, and following the deal Mozambique now owns 92.5 percent of HCB.

Mozambique will pay US$42 million for its stake, and the transaction is expected to be completed by September of this year, according to Mozambique’s Energy Minister, Salvador Namburete. (macauhub)