The production capacity of the Temane thermal power plant, in Mozambique’s Inhambane province, will be increased from 15 to 110 megawatts, under a contract signed on Wednesday in Tokyo by Mozambique state power company EdM and Japan’s Sumitomo Corporation, Mozambican news agency AIM reported.
The contract stipulates that the Japanese group will be responsible for obtaining a soft loan of US$190 million, which will finance the work to increase the plant’s capacity.
The agreement was signed by the President of EDM, Mateus Magala, and a representative of the Japanese group that will carry out the expansion and is involved in the construction works of the Maputo thermal power plant under construction in the former premises of Sonefe (National Society for the Study and Financing of Overseas Projects).
Magala said the next step in this project would be to secure a soft loan from a Japanese bank.
The president of Mozambique said that the increase in the plant’s production capacity would improve the quality of power supplied to the centre and south of the country, including the cities of Dando, Beira and Manica.