A contract signed by state-owned power company Electricidade de Mozambique (EdM) and a French consortium will allow for the repair of the Mavuzi and Chicamba hydropower plants.
Neither the Mavuzi or Chicama plants has received major rehabilitation work since being constructed in the 1950s and 1960s, respectively, EdM said.
Work on the projects is expected to increase their current cumulative output capacity from about 63 MW to around 86 MW.
HydroWorld.com reported earlier this month that German development bank KfW had agreed to provide US$23.5 million for the project.
EdM assumed control of the projects in 2011 after they sat unused for several decades.