France grants 50 million-euro loan to Mozambique to repair two hydroelectric facilities

24 October 2012

The French Development Agency (AFD) Monday granted Mozambique a loan of 50 million euros to fund the repair of the Mavuzi and Chicamba hydroelectric facilities, in Manica province, the Mozambican press reported.

The loan, which was signed by the French ambassador to Mozambique, Serge Segura, by the Mozambican Finance Minister Manuel Chang and by the Director of the AFD’s department for sub-Saharan Africa, Yves Boudot, will make it possible for the two facilities to increase production capacity by 50 percent.

According to Chang, Mavuzi will produce 52 megawatts and Chicamba 38 megawatts, after repair work costing 102 million euros overall. Mozambique has already secured most of the funding its needs.

“As well as this loan, the Swedish International Development Agency has donated 300 million Swedish kroner or 34 million euros and we are now negotiating with state German bank KfW for a loan of 18 million euros, which makes up the total of 102 million euros,” the minister said. (macauhub)