The Cahora Bassa Hydroelectric Dam (HCB) posted its biggest revenues over the last five years, following the company’s management being transferred to Mozambique, said chairman Paulo Muxanga speaking to Mozambican newspaper Domingo.
Noting that the result if the five years since management was transferred from Portugal to Mozambique was “clearly positive,” Muxanga also said that the company had posted annual turnover of around US$300 million.
HCB sells around 70 percent of the power it produces to three large electricity consumers: South Africa, Zimbabwe and Botswana.
However, the chairman of HCB noted that the weak point of the facility was the Songo sub-station (at which the alternate current from the southern plant is converted into direct current to be fed into the transmission lines), “a situation that has been in place since the 1990s.”
Muxanga said that equipment at the facility was in need of modernisation, but noted that large investments would need to be made given that replacement of the sub-station alone would cost US$120 million.
Under the terms of a deal reached between the Portuguese and Mozambican governments, the Mozambican state become the holder of 85 percent of HCB, and the Portuguese State later gave up the remaining 15 percent by selling half to Mozambique and the other half to Portuguese power grid company Redes Energéticas Nacionais (REN). (macauhub)