Brazil’s Electrobras studying construction of hydroelectric project in Mozambique

19 April 2012

Electrobras is studying the economic feasibility of building a hydroelectric plant and respective transmission lines in Mozambique, the president of that Brazilian power company said on Wednesday in Rio de Janeiro.

José da Costa made his comments on the sidelines of a presentation to investors and financial analysts at the Rio de Janeiro office of the Association of Capital Market Investment Professionals and Analysts (Apimec). The project is being studied in partnership with the state-owned Electricidade de Moçambique and aims to supply power to the entire country and to the southern African market, he said.

Construction of the 1,500 MW production capacity dam and two 1,500 km power transmission lines involves a current estimated cost of US$6 billion, of which 3.7 billion are for building the transmission lines, da Costa added.

The Electrobras president said the financing was still being worked out and that Brazil’s state-owned Banco Nacional de Desenvolvimento Económico e Social (BNDES), which controls 23% of Electrobras’s ordinary shares, may eventually join the financing operation.

According to the statement released by the company, da Costa said that the economic and environmental feasibility studies and financing scheme should be completed by the end of 2013. He specified that his company will have a 49% stake in the project, with the remaining 51% controlled by Electricidade de Moçambique (EDM).

On Wednesday the Electrobras president was also visited by a Mozambican government delegation headed by Prime Minister Aires Bonifácio Baptista Ali and EDM president António Sousa. (macauhub)