Africa Banking Construction Energy Finance Mozambique

Mozambique: Funding guaranteed for Temane-Maputo power line

The Islamic Development Bank (IDB) on Sunday approved a soft loan of 99.7 million dollars to finance the high voltage 400 kv electricity transmission line from Temane, in the southern Mozambican province of Inhambane, to Maputo.

According to a source in the Ministry of Mineral Resources and Energy, contacted by AIM on Thursday, the total cost of the transmission line in 550 million dollars. The World Bank has already promised a loan of 420 million dollars, and Norway a grant of 30 million dollars. Thus, with the new loan from the IDB, the total amount required is now available.

The new transmission line is an initiative of the Mozambican government and the publicly owned electricity company, EDM. It should ensure greater availability of electricity for various social and economic projects in Inhambane, Gaza and Maputo provinces, and provide power for more connections to domestic consumers.

EDM is developing a 400 megawatt electricity generation project in Temane in partnership with the South Africa company Sasol, and the independent power producer Globelec Africa Ltd. Sasol operates the natural gas fields of Temane and Pande. This gas will be the source of the power.

The body being formed is known as the Temane Independent Power Producer. The 560 kilometre transmission line, including three new sub-stations will link it to the national grid in Maputo.

The Temane Transmission Project (TTP) is the first phase in what has become known as the “backbone” of the national electricity transmission system. When complete, this will link Maputo to the Zambezi Valley in Tete province, where the Cahora Bassa dam, by far the largest generator of power in the country, is located.

Source: AIM via Club of Mozambique

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