EDM acquires 70% stake in Mphanda Nkuwa Hydropower plant
Mozambique’s state-owned energy company, Electricidade de Moçambique (EDM), has acquired a 70% stake in the shareholders of the Mphanda Nkuwa Hydropower Plant concessionaire, located on the Zambezi River in Tete province. The project, still in the design phase, is expected to have a production capacity of 1,500 MW.
The announcement was made by government spokesperson Filimão Suaze during a press briefing following the 27th Ordinary Session of the Council of Ministers, held in Maputo. Suaze described this acquisition as a key step in making the project feasible, though further commercial details will be disclosed at a later stage.
In December 2022, EDM, the Mphanda Nkuwa Hydropower Project Implementation Office, Cahora Bassa Hydroelectric, and a consortium formed by Électricité de France, Total Energies, and Sumitomo Corporation signed a Framework Implementation Agreement (FWA) to move the project forward. The investment is estimated at $5.5 billion.
During the construction phase, the project is expected to employ around seven thousand workers, with this number decreasing to three thousand permanent jobs once completed. Ninety-five percent of these positions will be reserved for Mozambican citizens. Financial closure for the project is expected by the end of 2024, with construction anticipated to be completed by 2030.
At the same Council of Ministers session, the government also approved regulations for the Forestry Law, aiming to update legislation to reflect the new dynamics of forest management in the country. The regulation seeks to modernise the management of forest resources, considering the increasing exploitation and evolving demands of Mozambican society.
Source: AIM
