Kreditanstalt für Wiederaufbau (KfW), the German government’s development bank, is to donate 18 million euros to fund renovation work on the Chicamba and Mavuzi hydroelectric power plants, under the terms of a contract signed with power company Electricidade de Moçambique (EdM).
Mozambican daily newspaper Notícias said in its Saturday edition that renovation of the two power plants was a Mozambican government project with an estimated cost of US$120 million, which has already secured other funding.
According to the newspaper the US$23.6 million provided by KfW are in addition to 300 million Swedish kroner (US$46.1 million) and 50 million euros (US$65.5 million) provided by development agencies from Sweden and France, respectively.
The chairman of EdM, Augusto de Sousa, said that given their age – built in the 1950s and 60s – the two plants have been operating at far below capacity, and that the work would increase power production. (macauhub)