Africa-Press – Angola. A total of 122 million euros will be provided by the French Development Agency (AFD), of which 22 million euros will come from the European Union, for the rehabilitation of the Cahora Bassa Hydroelectric (HCB) in Mozambique. The aim is to extend the useful life of the plant’s equipment for at least another 25 years.
The HCB undertaking to be rehabilitated has the capacity to produce 2,075 Megawatts of electricity. To this end, the Mozambican company signed a memorandum with AFD.
According to a statement, the rehabilitation program includes the refurbishment of the power station and the electrical substation, which will improve operational reliability, reduce forced interruptions and maintenance costs.
AFD and EU funding will contribute to mitigating long-term operational risks and help HCB maintain its position as a key player and vital supplier of green energy in the region, as well as a strategic asset for the Mozambican economy.
This new partnership between AFD and the EU in the energy sector will contribute to the implementation of the Team Europe Green Pact Initiative for Mozambique, officially launched in Maputo on 6 December 2022, and the EU’s Global Gateway Strategy.
BAD supports
On the other hand, the Board of Directors of the African Development Bank approved a loan package of 125 million euros to Hidroeléctrica de Cahora Bassa (HCB), to support the Vital Capex program, aimed at modernizing the company’s electricity production system .
The financing package for the Cahora Bassa Hydroelectric Power Plant (HCB) comprises up to 100 million euros from the African Development Bank (AfDB) and up to 25 million euros from the Africa Growing Together Fund (FACJ).
The amount is earmarked for the Vital Capex programme, which aims to modernize the company’s electricity production system.
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