24 August 2014

Mozambique: Concession Contracts Signed for Two New Dams

Maputo — The Mozambican government on Friday signed contracts with companies dominated by Mauritian capital for the construction of two new dams on the Zambezi river at Lupata and Boroma, in Tete province

The contracts were signed by Energy minister Salvador Namburete and by the representative of the two consortia, Paulo Ratilal.

The Lupata dam will produce 210 megawatts, and is costed at 1.072 billion US dollars. The consortium that will build it, Hydroelectrica de Lupata, consists of Hydroparts Holding and Cazembe Holding of Mauritius, the publicly owned Mozambican electricity company, EDM, and the Mozambican company Sonipal.

As for the Boroma dam, this will produce 612 megawatts, and is estimated to cost 572 million dollars to build. The partners in the Boroma consortium are Rutland Holding of Mauritius, EDM and Sonipal.

One of the partners in Sonipal is Prakash Ratilal, who is also chairperson of one of the newer Mozambican banks, Moza Banco.

Construction of the two dams should begin in 2015, and is scheduled to take five years. It is forecast that 1,488 Mozambicans will be employed during the construction phase.

Speaking after the signing ceremony, Namburete said “this act fits into the policies and strategies of the energy sector in order to promote and develop the country's vast energy potential, so as to attend to Mozambique's development needs and to achieve the objectives defined by the government”.

He admitted that there is a long way to go before any power is produced at Boroma or Lupata, “but the determination shown by the stakeholders gives us confidence that the dream will become a reality.”

Namburete promised the government “will do all to comply with its obligations under the leases we have signed, including supporting the concession holders in negotiating the contracts to buy and sell electricity”.

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