USD 5 billion Agreement inked for 1500 MW hydropower project in Mozambique

The government of Mozambique has signed partnership agreements with the EDF-led consortium for the implementation of the USD 5 billion Mphanda Nkuwa hydropower project in the Tete Province, northern Mozambique.

The alliance consists of EDF from France, TotalEnergies, and Japan's Sumitomo Corporation. This group will possess a 70% ownership share in the project, while Electricidade de Moçambique (EDM) and Cahora Bassa Hydropower Plant (HCB) will collectively own the remaining 30%. The International Finance Corporation (IFC) and the African Development Bank (AfDB) are providing support for the initiative.

The Mphanda Nkuwa project entails the establishment of a run-of-river dam and hydropower plant, generating 1,500 MW in the initial phase, situated on the Zambezi River, approximately 61 km downstream from Cahora Bassa. The commencement of the first turbine's operation is anticipated in 2031. Additionally, the consortium will assist EDM in the implementation of a 1,300 km high-voltage transmission line stretching from Tete to Maputo, facilitating the transmission of power from the plant. The power generated will be supplied to both the Southern Africa Power Pool and Mozambique.