China grants loan to Mozambique for power transmission line

22 July 2015

China will grant a loan of US$400 million to Mozambique, the amount outstanding for the construction of a second power line for energy transmission from the centre to the north of the country, a government spokesman said Tuesday in Maputo.

Mouzinho Saide, who is also Mozambique’s deputy health minister, said after a Cabinet meeting that the US$400 million loan had been secured but according to daily newspaper Notícias, he did not mention either the date on which the loan will be granted or its conditions.

At the meeting the government of Mozambique analysed ratified, among other things, the loan agreement concluded on 11 June, by which the Islamic Development Bank (IDB) offered to provide US$200 million dollars for the transmission line that will link Chimuara, in Zambézia province, and Nacala, in Nampula province, over a route of just over 600 kilometres.

Part of Tete province and the whole of Zambézia, Nampula, Cabo Delgado and Niassa currently receive electricity from the Centre/North line that starts in Songo, and any disturbance leaves the entire region in the dark.

Last January the media reported that construction of the transmission line would take four years and it could also begin in 2015, given that the current Centre/North Line is operating close to its safety and load limits due to pressure generated by consumer growth. (macauhub/MZ)