Portuguese power grid company REN may sell its stake in Mozambique’s Cahora Bassa dam in 2013

18 October 2012

Portuguese power grid group REN – Redes Energéticas Nacionais has said that it may sell its 7.5 percent stake in Mozambique’s Cahora Bassa Hydroelectric dam (HCB) in 2013 in exchange for involvement in new projects in Mozambique, the company’s chairman Rui Cartaxo said Wednesday in New York.

REN, which is 25 percent-owned by China’s State Grid Corporation, in July concluded the acquisition of 7.5 percent of HCB for 38 million euros, which it said it may sell to take art in new projects in Mozambique.

In a regulatory filing in April, REN said it planned to take part in the power transmission infrastructure project in Mozambique and that for this it may acquire, “stakes in companies, directly or indirectly owned by Electricidade de Moçambique (EdM),” which may imply the sale to EDM, “by REN of its 7.5 percent stake in HCB.”

On the sidelines of Portugal Day on Wall Street, Cartaxo said that of the 800 million-euro loan granted by the China Development Bank, which was one of the commitments of State Grid Corp in the privatisation of the Portuguese company, 400 million euros were intended to re-finance REN’s debts.

The remaining 400 million euros, he said, would be invested in Portugal in electricity and natural gas projects. (macauhub)