IFC to finance large hydropower project in Mozambique

The International Finance Corporation (IFC) will finance a 1,500MW hydropower project and associated transmission facilities in Mozambique.

The IFC will partner with the Mozambican Ministry of Mineral Resources and Energy (MIREME) through the Mphanda Nkuwe Hydroelectric Project Implementation Office to increase access to clean energy in Mozambique and other Southern African countries.

When completed, the Mphanda Nkuwa Hydropower Project is expected to supply power to meet Mozambique’s growing domestic demand and transform the country into a regional energy hub. It is expected the project will export electricity to neighbouring countries, including energy insecure South Africa. This project could accelerate the transition to clean energy and help combat climate change across Southern Africa.

The estimated $4.5billion project consists of a dam, power station and high-voltage transmission infrastructure of 1,300kms. The dam and power station will be in the Tete Province and the transmission line will go all the way to Maputo. The project is scheduled for completion in 2031.

Carlos Yum, Mphanda Nkuwa Hydroelectric Project Implementation Office Director said the hydropower project will help the Mozambican government achieve its vision of universal electricity access by 2030, stimulate industrialisation and boost growth through reliable transmission infrastructure and competitive power.

On the Mozambique hydropower project, IFC Senior Country Manager for Mozambique, Carlos Katshuya pointed out clean and sustainable energy is a key driver of economic and social development. “We are pleased to leverage IFC’s experience in developing and financing large hydropower projects in Africa and globally to boost Mozambique’s supply of affordable renewable energy and meet the country’s growing demand for power.”

The IFC will work with Mozambique and the project implementation office to structure the project. This will include the review of technical design, environmental safeguards, and commercial and financial structure. The goal is to help mobilise competitive private investment to ensure the project reaches commercial operation and support the country’s sustainable energy transition.

Theresa Smith | https://www.esi-africa.com/