The Government of Mozambique, represented by the Ministry of Mineral Resources and Energy (MIREME), has officially inked two partnership agreements with its Strategic Partner for the implementation of the Mphanda Nkuwa Hydropower Project.
The Strategic Partner, a consortium led by Electricité de France (EDF), comprising TotalEnergies and Sumitomo Corporation, will spearhead the development, construction, and operation of the project. This ambitious venture comes with an estimated investment of $5 billion.
The Franco-Japanese consortium secures a majority stake of 70%, while Electricidade de Moçambique (EDM) and Hidroeléctrica da Cahora Bassa (HCB) will collectively hold the remaining 30%. The Strategic Partner will also collaborate with EDM in the creation of a high-voltage power transmission line.
The project, situated on the Zambezi River in the northern province of Tete, involves the construction of a dam and hydropower plant with an initial production capacity of 1,500MW. The Mphanda Nkuwa hydropower plant is expected to play a pivotal role in stimulating Mozambique's economy by providing clean energy for major industrial projects, supporting electrification initiatives, and exporting surplus energy to the region.
Considered a central element of Mozambique's energy transition strategy, the project aligns with the government's vision for the country's development in the coming decades.
The agreements not only open the door to competitive private capital and concessional public funding but also ensure the infusion of international best practices, modern technology, and the training and certification of Mozambican personnel, generating long-term employment opportunities.
The implementation of the project will include comprehensive initiatives such as resettlement, environmental compensation, and socio-economic development at local and regional levels, adhering to national and international standards with the assistance of development partners and financial institutions.
Carlos Yum, Managing Director of the Mphanda Nkuwa Hydropower Project Implementation Office, emphasized the historic significance of the agreements, stating, "The signing of these agreements in the presence of HE President of the Republic is in itself a historic milestone and an unquestionable demonstration of the government’s commitment to this process and the project."
Minister of Mineral Resources and Energy, Dr. Carlos Zacarias, highlighted the potential of the Mphanda Nkuwa project to usher in a new era of hydropower development in Mozambique, accelerating the energy transition and green industrialization.
Chrysoula Zacharopoulou, French Minister of State for Development, Francophonie, and International Partnerships, expressed France's commitment to Mozambique's sustainable development, stating, "We trust Mozambique will soon count among the leaders of hydropower in the region."
The project timeline indicates that the first turbine is expected to be operational by 2031. The selection of the Strategic Partner and the signing of the agreements follow a competitive, rigorous, and transparent process initiated in June 2022.
The event witnessed the participation of the Head of State, HE the President of the Republic, government officials, representatives from the French Government, diplomatic corps, consortium companies, chairpersons of EDM and HCB, and other key stakeholders.
