This archive report was first published on 24 June 2021.
Published on June 24, 2021, Mozambique has announced plans to sell a majority stake in the planned $2.4 billion Mphanda Nkuwa hydropower project, which is set to be one of the biggest in southern Africa.
The project, expected to generate 1,500MW of power, will be accompanied by an associated transmission line that could increase the total project cost to as much as $4.4 billion.
The government will issue a request for proposals this year and will take up to four months to select the winner and another six weeks to negotiate the joint development agreement.
The shareholding structure for the new project will include state-controlled Hidroelectrica de Cahora Bassa, which owns the existing hydropower plant upstream, and electricity utility Electricidade de Moçambique EP.
According to Carlos Yum, the director in charge of the Mphanda Nkuwa project, the new equity investor should already own and operate similar projects of comparable size.
Mphanda Nkuwa will be about 60 kilometers downstream of the Zambezi River from the Cahora Bassa hydropower dam that can generate 2,075MW of power.
Commissioning for the project is set for 2030, with plans to sell electricity to Mozambicans and export power to neighboring countries, including South Africa, where there have been shortages for more than a decade.
