Ambassador of Brazil guarantees funding for dam construction in Mozambique

11 November 2016

Brazil will honour its promise to finance the construction of the Moamba Major dam on the River Umbelúzi, in Mozambique’s Maputo province, despite the fact that Brazilian projects in Mozambique and other countries are being reevaluated, Brazil’s ambassador in Mozambique said on Wednesday in Maputo.

Ambassador Rodrigo Soares said at the end of an audience granted by the Prime Minister, Carlos Agostinho do Rosario, the reassessment of projects that require public funds “is a normal procedure in the context of current changes in the Brazilian government (with the impeachment of President Dilma Roussef).”

The diplomat also said that the revaluation is being carried out by the National Bank for Economic and Social Development (BNDES), which in October announced the suspension of 25 projects implemented by Brazilian companies in foreign countries, which include Angola and Mozambique.

The suspension of payment of US$4.7 billion relates to contracts awarded to engineering and construction companies, including Odebrecht, OAS, Queiroz Galvão, Camargo Corrêa and Andrade Gutierrez, which are involved in a corruption scandal known in Brazil as “Operation Jet Wash.”

The main project that is at risk in Mozambique is the Moamba Major dam, where the contractor is Andrade Gutierrez, according to Mozambican news agency AIM.

The Moamba Major dam, whose first stone was laid two years ago, will have the capacity to store 760 million cubic metres of water, control the flow of the Incomati River, to increase the water supply to the cities of Maputo, Matola and Ressano Garcia and have a plant to produce 15 megawatts of electricity.

The construction of this dam has an estimated cost of US$466 million and Brazil had promised to provide 320 million dollars. (macauhub)