Financing provided for 2.07 GW Hydropower project in Mozambique

Hidroeléctrica de Cahora Bassa (HCB) in Mozambique has secured a loan package of up to EUR125 million (US$131 million) from the African Development Bank Group to fund the modernization of its electricity power production system.

HCB is the largest Independent Power Producer (IPP) in Southern Africa, supplies Mozambique and the Southern African Development Community (SADC). The modernization will extend the life of the hydropower project by at least 25 years, improve the reliability of energy delivery, reduce outages, enable the company to meet its contractual obligations to off-takers and improve SADC electrical sector regional integration. Additionally, it will assure the continued energy security of the Community, particularly South Africa, Mozambique, and Zimbabwe.

The African Development Bank and its Africa Growing Together Fund provided up to EUR100 million (US$105 million) and EUR25 million (US$26.3 million), respectively.