Africa-Press – Mozambique. The Government of Mozambique, through the Ministry of Mineral Resources and Energy (MIREME), represented by the Implementation Office of the Mphanda Nkuwa Hydroelectric Project (GMNK), officially launched in Maputo, this Monday, December 13, 2021, the Tender for the “Selection of the Strategic Partner or Investor for the Development of the Mphanda Nkuwa Hydroelectric Project”.
At the ceremony, information was presented on the results of the market survey carried out in September, the critical aspects of structuring the project, alignment with potential buyers and shareholder participation. The structure of the energy transmission line, the methodology for selecting the strategic partner, the implementation schedule, among other relevant issues related to the project transaction, were also presented.
The first stage of selecting the strategic partner should take place by April, 2022, and will conclude with a short list of selected investors, through a pre-qualification process, based on technical and financial criteria.
In the second stage, already with a short and determined list, the pre-qualified bidders will receive a specification with details on the financial model and the place of submission of the respective proposals, in a clear and detailed manner.
The document will also contain technical and financial information and its impact on the financial investment model in the project. Its completion is scheduled for 2022.
The second stage will culminate in the signing of an Mphanda Nkuwa development agreement between Electricidade de Moçambique and Hidroeléctrica de Cahora Bassa, which represent the public sector and its selected strategic partner. It should be noted that the strategic partner will be responsible for investing between US$500 million and US$600 million in the project.
The final objectives of this process are, firstly, to allow the strategic partner to be selected based on criteria of technical capacity, financial strength and international experience in the development of hydroelectric projects, taking into account the investment required; and, secondly, that the identified partner has the best profile and is suited to the sector’s strategic objectives, through a competitive and transparent process.
The event was attended by members of the government, entities in the energy sector, diplomatic corps accredited in Mozambique, financiers and the private sector, among others.
About GMNK
The GMNK was created through Ministerial Diploma no. 18/2019, of February 7th, by MIREME. The main objective is to ensure the coordination of actions for the implementation of the Mphanda Nkuwa project.
About the Project
Location:
The Mphanda Nkuwa Dam will be located in Tete Province, Centro region, on the Zambezi River, 61km downstream of the Cahora Bassa Hydroelectric Power Plant.
Project description:
The Hydroelectric Power Plant will have a capacity of up to 1,500 Megawatts and an Electric Power Transmission Line from Tete to Maputo with 1,300 kilometres.
Budget:
US$4.5 to 5 billion, 60% for the construction of the dam and 40% for the power transmission line.
Strategic importance:
The project will position Mozambique as an energy hub in southern Africa. It will provide lower cost energy in the country and region, contribute to universal access to energy in the country by 2030 and support rapid industrialization, with job creation, skills development and business opportunities (local content). Social and economic benefits, in the form of royalties and income on concession fees for the Mozambican state.
Environmental approach:
The project will be implemented in strict compliance with national standards and internationally accepted best practices for the development of projects of this nature, to mitigate negative impacts and maximize positive aspects. In this context, the GMNK recently signed an agreement with the International Hydroelectricity Association for the assessment of the project’s sustainability, including training and capacity building.
Construction start date:
After the financial close, scheduled for the end of 2024.
Construction period:
Five to six years.
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