25 April 2008
Maputo — The chairperson of the Board of Directors of Hidroelectrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa dam on the Zambezi River, Paulo Muxanga, has told reporters that over the past four months HCB has contributed about 250 million meticais (about 10.3 million US dollars)to the Mozambican treasury.
This is one of the results of the dam passing into majority Mozambican ownership. As from late November 2007, the Mozambican state has owned 85 per cent of the shares of HCB, and the Portuguese state the remaining 15 per cent. Under the previous ownership arrangement, in which Portugal held 82 per cent of the shares, HCB paid no taxes.
Muxanga explained that much of HCB's payments to the treasury arise from the new concession contract HCB has signed with the government giving it the right to operate the dam. Under the contract, HCB must pay the state a monthly fee of ten per cent of gross energy sales.
In 2007, the sales and export of energy amounted to about 150 million dollars. This figure is certain to increase, since the dam is now operating at close to full capacity. Under the latest agreement between HCB and the South African electricity company Eskom, the South Africans are to buy an addition 250 megawatts, raising sales of HCB power to Eskom from 1,100 to 1,350 megawatts.
The amount of power reserved for use by Mozambique's own power distribution company, EDM, ha risen from 300 to 400 megawatts. The Zimbabwean power utility ZESA purchases 200 megawatts, and HCB also sells 35 to 40 megawatts to Botswana. Thus committed sales of HCB power now amount to 1,990 megawatts. The total generating capacity of the dam's five turbines is 2,075 megawatts.
Muxanga said that between December 2007 and March 2008, HCB paid the treasury 166.9 million meticais in concession fees. A further 83.6 million meticais was paid in other fees and taxes, arising from the new ownership structure.
The government paid Portugal 700 million dollars to acquire 67 per cent of the shares. The money came from a loan negotiated with a banking consortium formed by CA Lyon of France and the Portuguese Investment Bank (BPI). The loan is to be repaid out of HCB's sales of electricity. Muxanga was confident that HCB will have no problem in making these payments.
Ram/pf (398)
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