Africa-Press – Mozambique. The Mozambican government yesterday approved a resolution authorizing state-owned companies Eletricidade de Moçambique (EDM) and Hidrelétrica de Cahora Bassa (HCB) to each acquire up to 15% of the share capital of the future Mphanda Nkuwa Hydroelectric Plant.
The decree was approved at a Council of Ministers meeting, according to the final communiqué authorizing each of the aforementioned companies to subscribe to “up to 15% of the shares of the Mphanda Nkuwa Hydroelectric Plant (CHMN).”
Eletricidade de Moçambique is a public company, while HCB is a private limited company, 85% owned by state-owned Companhia Elétrica do Zambeze and 7.5% by the Portuguese company Redes Energéticas Nacionais (REN). The company holds 3.5% of its own shares, while the remaining 4% is held by Mozambican citizens, companies and institutions.
On September 12 of last year, the Mozambican government approved a resolution authorizing Eletricidade de Moçambique to acquire 70% of the Mphanda Nkuwa Hydroelectric Plant, valued at €4.5 billion.
The project, expected to begin operations in 2031, will consist of a hydroelectric plant with a production capacity of 1,500 Megawatts (MW) and a 1,350- to 1,400-kilometre high-voltage transmission line, which will run from Tete in central Mozambique to Maputo in the south.
With this new project and the modernization of existing power plants, the Mozambican government expects to add 3,500 MW of new hydroelectric capacity between 2024 and 2030.
In December 2023, the Mozambican government and a consortium led by Electricité de France (EDF) signed agreements for the implementation of the Mphanda Nkuwa Hydroelectric Project.
In addition to EDF, the international consortium is made up of French major TotalEnergies and Japan’s Sumitomo Corporation, which jointly owned 70% of the hydroelectric plant.
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