Maputo — The Mphanda Nkuwa hydro-electric project, on the Zambezi river, in the central Mozambican province of Tete, is expected to generate 13.98 billion US dollars in revenues.

In a statement, the government's Information Office (Gabinfo) announced that, during the construction phase, the project is expected to create around 7,000 jobs.

The project implementation timetable envisages completion of the development phase by 2028, the start of construction in 2029 and the commencement of commercial operations from 2034.

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"During the construction phase, the project is expected to generate between 6,000 and 7,000 direct jobs, whilst projected public revenue is estimated at around 13.98 billion dollars, derived from taxes, fees and dividends over the project's lifetime", reads the document.

The project, the document say, continues to attract strong interest from international financial institutions and strategic partners, paving the way for financial closure and the start of the construction phase, despite changes to the composition of the private consortium, "which do not compromise the development of the project or the planned timetable."

Among the key milestones achieved since the project's conception, the document adds, is the completion of the feasibility study for the Tete-Maputo power transmission line, considered strategic for supplying the main consumption centres, strengthening national energy security and increasing the capacity to export electricity to the region.

The Mphanda Nkuwa project is part of Mozambique's strategy to expand electricity generation, providing for the construction of a hydroelectric power station 61 kilometres downstream from the Cahora Bassa Hydroelectric Power Station.

The Mphanda Nkuwa project involves building a dam about 60 kilometres downstream from the existing dam at Cahora Bassa, and a power station that will generate 1,500 megawatts of electricity. There will also be a high voltage transmission line running for 1,300 kilometres from the Zambezi Valley to Maputo.

The construction of the dam and power station is budgeted at 5.5 billion US dollars. Once the power is being generated there will be 3,000 permanent jobs, 95 percent of them occupied by Mozambicans.