Islamic Development Bank donates funding for an electricity project in Mozambique

12 July 2019

The Islamic Development Bank will donate US$99.7 million to build a power transmission line between Temane and Maputo, southern Mozambique and a combined cycle plant, a source at the Ministry of Mineral Resources and Energy said.

The source added that this donation completes the US$550 million needed for the construction of the high voltage line, which will be 563 kilometres, according to Portuguese news agency Lusa.

“The power transmission line between Maputo and Temane is a structural project and an initiative of the Mozambican government and public company Electricidade de Moçambique that will allow greater security and availability of energy for various socio-economic projects in the provinces of Inhambane, Gaza and Maputo, in addition to enabling new connections to new customers,” he said.

In June, the World Bank approved US$420 million in grants and guarantees for the Temane Regional Electricity Project (TREP), to help Mozambique strengthen domestic and international electricity transmission capacity and increase production capacity through private sector investment.

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