The Mozambican state’s business sector will have state guarantees to take on debt of up to 151.25 billion meticals (US$2.439 billion), according to the State Budget for 2019.
The largest state guarantee, almost 90% of the total, aims to secure a loan that Empresa Nacional de Hidrocarbonetos (ENH) will seek to raise in international markets to cover its participation in natural gas projects in the Rovuma basin, in the northern province of Cabo Delgado.
ENH also plans to raise 136.13 billion meticais (US$2.195 billion) for its contribution related to the 15% stake it holds in the Area 1 block, whose operator is US group Anadarko Petroleum.
Mozambican daily newspaper Notícias reported that this government decision aims to facilitate the final investment decision, which is expected to be taken by the consortium in the first half of 2019.
The remaining part of State backing and guarantees, amounting to 15.13 billion meticais, is intended to support other areas of the state business sector. (macauhub)