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Stephenson Harwood

News

posted 20 Oct 2008

In brief

Mozambique seeks $2.5bn for power line

Mozambique’s publicly owned electricity company, EDM, is to invest $2.5bn in a new 2,000km electricity transmission line from the province of Tete in the west of the country – where the electricity producing Cahora Bassa dam is located – to the capital Maputo.

The plan is intended provide a ready market for electricity to be generated from the Mphanda Nkuwa dam, which will be built on the Zambezi 60km downstream from Cahora Bassa, and to reduce dependence on South Africa. Because Cahora Bassa is closer to South Africa, its power is exported there and then re-imported. EDM pays South African electricity company Eskom for the line rental.

EDM is also planning to construct a large coal-fired power station in Tete, too. But without the new line, Mozambique’s development will be retarded, warned Mozambiquan Energy Minister Salvador Namburete.

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