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Mozambique to start building $2bn dam in 2010

Construction of Mozambique's $2-billion Mpanda Nkuwa Hydro-electric dam in the northern Tete province will begin in 2010
The Mpanda Nkuwa dam is expected to produce 1 350 MW.

While some of the electricity would be used to power Mozambique, the surplus will be exported to other countries of the Southern African Development Community (SADC), which are battling with shortages and scarce capacity.

"We expect to finalise concession contract negotiations with the Electricity Company (EDM) and other clients by June this year, then conclude financial deals," Namburete was quoted as saying. "We expect the process to be finalised by December this year and construction should begin between April and May next year."

The Mpanda Nkuwa dam will be built 60 km downstream from the major Cahora Bassa Dam, and proponents hope the new dam will help attract energy-intensive industries to Mozambique.
The Export-Import Bank of China (China Exim Bank) is financing the construction of the dam. The total $2,3-billion loan package also includes funding for a transmission line from the dam site to the capital of Maputo.

Additional information:
News date: 15/05/2009

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