World Bank finances power generation and transmission capacity in Mozambique

24 June 2019

The World Bank has approved donations and guarantees in the amount of US$420 million to help Mozambique strengthen domestic and regional power transmission capacity and increase production capacity through private sector investment, according to a statement released on Friday in Washington.

The Temane Regional Electricity Project (TREP), which also has a US$24 million funding from the Norwegian Sovereign Fund, is an integrated operation involving both public and private investments, including the construction of a high voltage transmission line over 563 kilometres between Maputo and Vilanculos/Temane and a 400-megawatt combined cycle plant in Temane.

“Together, they will strengthen production capacity and transmission capacity in both Mozambique and Southern Africa,” the statement added, noting that the project would allow private investment in energy production estimated at US$750 million.

TREP is part of the “backbone” of Mozambique, which was designed to integrate the separate energy systems of the north, centre and south of the country and strengthen the regional link to the Southern African Power Pool (SAPP).

The Temane Regional Electricity Project includes two other operations of the International Development Agency, currently under execution in Mozambique under a US$230 million financing package, to improve the reliability and efficiency of the existing electricity system, introduce reforms in the state Electricity from Mozambique and expand access to electricity. (Macauhub)