22 September 2008
Maputo — Mozambique's publicly owned electricity company, EDM, in partnership with as yet unspecified funding agencies, plans to invest 2.5 billion US dollars in a new electricity transmission line from the western province of Tete to Maputo.
Speaking to reporters on Monday, Energy Minister Salvador Namburete said this line would help reduce the country's dependence on South Africa. The current line from the Cahora Bassa dam on the Zambezi southwards does not go anywhere near Maputo or other urban centres in southern Mozambique.
Instead it goes to the Apollo sub-station in South Africa. Electricity is then imported from South Africa to supply Maputo. This is treated as Cahora Bassa power, and so EDM pays the Cahora Bassa operating company, HCB, in local currency, but it must also pay the South Africa electricity company, Eskom, a rental for the line.
Namburete said that studies for building the new line were at a "conclusive phase". These studies should show the most viable and sustainable options for building the line.
"The last study finished three months ago", he said. "The private consultant will now present the results of the study on the most viable option. Then we shall evaluate and make our decision. As soon as we have decided on the option, we shall finalise the design and launch the public tender".
Namburete did not venture a date for the start of construction, but he stressed that the project is urgent. He argued that a new line is indispensable for the new electricity generating capacity to be built in Tete, notably the Mphanda Nkuwa dam, to be built on the Zambezi some 60 kilometres downstream from Cahora Bassa. This dam, budgeted at 1.65 billion dollars, will generate 1,500 megawatts. There are also projects for giant coal fired power stations in Tete.
"Without this new transmission line, it's difficult to advance to the other electricity generation projects that we want to develop", said the Minister. "We want to supply the urban centres of the south from within Mozambique, and ensure that electricity reaches other parts of the country".
He said that EDM's private partners in building the new line have already been identified but he declined to reveal their names. AIM has leant, however, that a group of Indian businesses are interested in participating.
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