$1.8b for new hydropower plants in Mozambique

26 June 2014

Mozambique has approved a $1.8-billion plan to build two hydropower plants to meet growing energy demand in the central province of Tete, home to some of the world’s largest untapped coal reserves, a government minister said on Wednesday.

Unlisted Brazilian engineering group ATP Engenharia Ltda won a $1.2-billion contract to build a 600 MW hydropower plant and another $600-million to construct a 215 MW hydropower project, fisheries minister Victor Borges said.

The power will be sold domestically and to the rest of southern Africa. Mozambique already exports power to neighbours Zimbabwe and South Africa, which are struggling to meet demand.

Mozambique’s discovery of significant natural gas reserves, coupled with rapid economic growth of 8% a year, has made the country an attractive destination for investment in the power sector.
By: Reuters

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