World Bank supports Mozambican power company with donation of US$150 million

4 October 2017

The World Bank has donated US$150 million to Mozambique to support state-owned power company Electricidade de Moçambique (EDM) to improve the capacity and operational efficiency of the power grid, the World Bank said in a statement.

Most of the US$117 million grant from the International Development Association (IDA) will be channelled into restoring and modernising the electrical power grid to improve the quality and reliability of the infrastructure.

This upgrade and modernisation will include investments to improve transmission and distribution lines, installation of additional transformers to increase capacity and installation of a variety of equipment in the cities of Maputo, Matola, Nacala, Pemba and Lichinga.

The remaining funds will be spent on EdM’s operational and commercial areas (US$29.5 million), strengthening the company’s institutional capacity (US$1.5 million) and training for staff of the Ministry of Mineral Resources and Energy (US$2.0 million).

“This project is part of a broader World Bank support programme for the energy sector in Mozambique and is a coordinated and complementary effort to that of other partners that support the development of the sector,” said Zayra Romo, Senior Energy Specialist and head of the team responsible for the operation.

The World Bank’s International Development Association was established in 1960 and helps the poorest countries in the world by providing low-interest and zero-rate financing for projects and programmes that boost economic growth and reduce poverty. (macauhub)