Mozambique seeks to add mix of projects to power portfolio

The Limpopo River, Gaza Province The Limpopo River, Gaza Province

In Southern Africa, the water agency responsible for southern Mozambique, Ara-Sul, is seeking a suitable consultant to draw up a feasible financial plan for a proposed dam on the River Limpopo in Gaza province, through a recently launched tender.

This project will overflow into additional opportunities for the private sector, which could potential include an additional 40MW hydroelectric power plant.

Zitamar News reported that the tender, which was published in Noticias on Monday, is for a consultant to advise the government on the best way to finance the construction of the proposed Mapai dam.

In addition, the selected consultant will need to identify opportunities for public-private partnerships (PPPs) in relation to the dam’s development. These opportunities can extend out to benefit and support other industries such as agriculture and tourism.

Clean power: project feasibility

Currently, a feasibility study for the Mapai dam project is underway through the support of a €3.4 million ($3 million) grant from a facility under the African Development Bank run, the African Water Facility.

Zitamar News reported that part of the study is aimed at helping southern Mozambique’s Limpopo Basin area better manage the effects of climate change, adding that €195,800 ($212, 602) has been earmarked for this part of the study, which is being funded by FAPA, a fund conceived by the African Development Bank aimed at stimulating private sector participation in development.

Interested bidders are expected to submit their expressions of interest by 8 February 2016.

Power projects in the pipeline

Earlier this month, the Ncondezi Energy Company announced that it had signed a binding Joint Development Agreement with China’s Shanghai Electric Power Company, for the development of a 300MW coal-fired power project in Mozambique’s Tete province.

ESI reported that Ncondezi Energy explained that it is targeting to commission power generated from the plant in the second half of 2017 and commercial operations in the first half of 2018.

Source: Ashley Theron from ESI Africa