Mozambique to Sell Stake in Mphanda Nkuwa Hydroelectric Project

  • Mozambique plans to sell a majority stake in the Mphanda Nkuwa hydropower project.
  • The plant is expected to cost about $2.4 billion.
  • Part of the power generated by the plant would be sold to neighbouring countries.

The Mozambican government plans to sell a majority stake in the 1,500 MW Mphanda Nkuwa hydropower project to raise funds for the project’s implementation. The government intends to launch a call for expressions of interest before the end of the year.  Successful investors will implement the project in partnership with the state-owned companies, Electricidade de Moçambique (EDM) and Hidroelectrica de Cahora Bassa.

The Mphanda Nkuwa hydropower plant will be sited 61km southeast of the Cahora Bassa dam. The government estimates that the project would require an investment of US$2.4 billion. In addition, the construction of a transmission line will raise the project’s overall cost to US$4.4 billion.

The government wants to commence the project’s construction in 2024 and has planned for delivery in 2030. Part of the power generated will be sold to neighbouring countries including South Africa and Lesotho.

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