Mozambique launches build of new $1bn power projects.

Temane initiative is a regional game-changer, says developer.

Maputo  — Mozambique on Monday began construction of gas-to-power plant and transmission line projects worth $1bn in the southern province of Inhambane as the government aims to boost energy supply.

The World Bank is one of the financing partners of the infrastructure projects, alongside the US, Norway, African Development Bank (AfDB), Islamic Bank and The OPEC Fund for International Development, according statements from the World Bank and the US embassy.

“Today we mark a milestone in the framework of this endeavour to illuminate Mozambique. Our governance aspires that more than 10-million Mozambicans will have access to electricity for the first time in their homes by 2024,” Mozambique President Filipe Nyusi said at the launch of the project.

Upon completion, the gas-to-power Temane Thermal Power Plant will have a capacity of 450MW.

“Today, we are witnessing the exceptional beginning of a vision that aims to provide energy for all Mozambicans: this is a transformative project for the country,” the representative of the World Bank in Mozambique, Idah Pswarayi-Riddihough, said during the launch.

Globeleq is the lead developer along with its partners EDM, Sasol Africa and eleQtra.  Mike Scholey, CEO of Globeleq, said in December: “The Temane initiative is an absolute regional game-changer. It will ensure a reliable and affordable power supply — crucial elements for economic and social development. [It] will provide electricity access to millions of people in the region.”

US ambassador to Mozambique Dennis Hearne said the US was supporting the Temane project through a $200m direct loan for its construction via the US International Development Finance Corporation (DFC).

“In addition, thanks to the support of the US government’s signature Power Africa programme, we are providing a “transaction adviser” assigned to EDM (Mozambique power utility Eletricidade de Moçambique) to help bring the critical Temane Transmission Line Project to financial close,” said Hearne.

May 2021

BUSINESS DAY