Mozambique approves construction of 1,300-MW Mphanda Nkuwa

The government of Mozambique has approved the construction of the 1,300-MW Mphanda Nkuwa hydroelectric project following a meeting between constructors and Mozambique President Armando Guebuza.

Portuguese news agency Lusa reported the approval, saying Brazilian builder Camargo Correa and its Mozambique partner, Grupo Insitec, met with Guebuza during the president’s visit to Brazil. (HNN 7/24/07)

A preliminary visit by Mozambique officials to Brazil in July included evaluation of conclusions of project technical studies with a goal of completing the project proposal for presentation to the Mozambique government. Participants discussed technical aspects of the project as well as financial structuring.

Camargo Correa and Insitec are to present an outline of the construction project to the government on September 27.

In November 2006, the government of Mozambique signed a memorandum of agreement for development of Mphanda Nkuwa with a consortium of utility Electricidade de Mocambique (EDM), Camargo Correa, and Energia Capital. The project is expected to go on line in 2010 or 2011 on the Zambezi River, 70 kilometers south of the 2,040-MW Cahora Bassa hydro project.

In 2006, officials said China’s Export-Import Bank agreed to invest US$2.3 billion in the construction of Mphanda Nkuwa.

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