EU pledges $538 mln for Mozambique mega-dam
MAPUTO, June 13, 2023 – The EU and the European Investment Bank have pledged USD 538 million to finance the Mphanda Nkuwa mega-dam in Mozambique, the Mphanda Nkuwa Hydroelectric Project Implementation Office announced on Sunday.
Around USD 215 of the new funding will be spent on related electricity transmission infrastructure, with the remaining USD 323 spent on building the power station.
The USD 4.5- billion hydropower project is located on the Zambezi River and will have a capacity of 1.5 GW.
Financial close on the project is expected in 2024, with completion expected before 2030.
The deal follows the choosing of France’s TotalEnerigies and Electricité de France and Japan’s Sumitomo Corporation and Kansai Electric Company as strategic partners in May 2023.
The development is located near the existing Cahora Bassa hydropower dam, which produces 2.08 GW. More than 50% of its electricity is sold to South Africa.