- The African Development Bank Group has approved a loan package for €125 million to Hidroeléctrica de Cahora Bassa (HCB) in Mozambique to support its Vital Capex program aimed at modernizing the company’s electricity production system.
HCB, the largest Independent Power Producer (IPP) in Southern Africa, provides hydroelectric power to Mozambique and the Southern African Development Community (SADC).
The package comprises up to €100 million from the African Development Bank and up to €25 million from the Africa Growing Together Fund.
The modernization will extend the life of the plant by at least 25 years, enhance the reliability of energy delivery, reduce outages and enable the company to fulfil its contractual obligations to its off-takers and enhance regional integration of the electricity sector in SADC. It will also ensure the sustainability of energy security of the Community, particular South Africa, Mozambique and Zimbabwe.
Author: Bryan Groenendaal