The government of Mozambique has approved construction of the 1,500-MW Mphanda Nkuwa hydroelectric project by Brazilian builder Camargo Correa, a Brazilian newspaper reported.
Brazil’s Valor Economico reported Camargo Correa received final approval to build the hydro project on the Zambezi River as well as a 1,400-kilometer transmission line from Mphanda Nkuwa to Maputo. The works are expected to require an investment of US$3.2 billion.
Camargo Correa and its Mozambique partner, Grupo Insitec, filed a detailed proposal for construction of the project in September 2007, following a meeting between the constructors and Mozambique President Armando Guebuza that endorsed the construction. (HNN 10/1/07)
Construction is expected to begin in 2009 with completion in 2013.
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, a unit of Grupo Insitec. The construction consortium was to negotiate project financing with banks, with no indebtedness or guarantees by the Mozambique government.