The coordinator More entities have expressed their intention to finance the Mphanda Nkuwa hydroelectric project, in the province of Tete, central Mozambique, which is raising expectations regarding the realisation of this project, which is expected to have an impact on the Mozambican and regional energy sector.
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According to Mozambican news agency Agência de Informação de Moçambique, the total budget for the project is estimated at 4.5 billion US dollars.
The director of the Project Implementation Office, Carlos Yum, explained that in addition to the European Union and the European Investment Bank, which have announced funding of 500 million US dollars, other partners such as the African Development Bank, the French Development Agency, the South African Development Bank and the Islamic Development Bank have also expressed their intention to contribute to the implementation of this structuring programme for the sector.
Speaking to journalists a few days ago in the city of Lichinga, the capital of Niassa province, Carlos Yum argued that bringing these institutions together is important, given their strength and importance on the financial scene. “For the size of the investment in this project, we’re going to need a number of financial institutions in the international market,” he said.
He also revealed that some of the work already underway involves external institutions that have been providing significant financial support.
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“We’re working with the World Bank to provide the project with ten to 15 million dollars in development support. I’m talking about legal and financial structuring, in its preparation phase, and we also have support from Electricidade de Moçambique (EDM) and Cahora Bassa [the hydroelectric plant],” he said, pointing out that this is a substantial, large-scale renewable energy project with the potential to contribute to the country’s energy transition, as it will enable the generation of steady, green current for the industrialisation process.
