Mozambique: 60 Million Dollars Spent On Compensation During Power Line Construction

20 November 2025
Agencia de Informacao de Mocambique (Maputo)

Maputo — The Mozambican National Energy Transport Company (STE) has so far spent 58.6 million US dollars to resettle and compensate households and public infrastructures affected by the Temane-Maputo Power Transmission Line construction project.

The Temane-Maputo Power Transmission Line runs for 563 km and will transport energy from the Temane Thermal Power Plant, in the southern province of Inhambane, to Maputo. The project was carried out as part of the Tete-Maputo mega-project, regarded as the "Backbone' of the electrification of the country

The 400 kilovolt (kV) line includes the construction of three new substations in Vilankulo, Chibuto, and Matalane, with the aim of strengthening the reliability and capacity of the country's electricity grid and boosting economic development.

The National Energy Transport Company (STE) is owned by the publicly-owned electricity company, EDM.

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According to STE data, cited by the independent newsheet "Carta de Moçambique', the project affected 219 houses; four in Inhambane, 67 in Gaza and 147 in Maputo. It also affected two hospitals, three schools, a police station, and three water supply sources.

"STE spent USD 25.7 million to resettle the homes and social infrastructure. In addition to resettlement, STE spent just over USD 21 million in monetary compensation due to the fact that the power line affected 2,736 farms (1,275 in Maputo, 1,335 in Gaza and 125 in Inhambane), and 12 commercial establishments. The compensation included unfinished houses, plots of land, fruit trees, and other assets', reads the report.

In its community support plan, STE invested USD 4.6 million to build 88 classrooms (46 in Maputo, 34 in Gaza and eight in Inhambane), 18 water supply stations, a community center, a maternity ward, a maternity home, and a hospital porch.

STE allocated seven million dollars to consultancy services for the implementation of these social projects. The services include the preparation of urban development plans, construction supervision, and livelihood restoration plans.

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