IFC Signs on to Support Development of 1500 MW Hydropower Project in Mozambique

  • The International Finance Corporation (IFC) and Mozambiques’ Ministry of Mineral Resource and Energy (MIREME) have announced a collaboration to develop the 1500MW Mphanda Nkuwa Hydroelectric Project (GMNK) project and associated transmission facilities.
  • The IFC is a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets. 

Once complete, the Mphanda Nkuwa Hydropower Project is expected to supply power to meet the growing domestic demand in Mozambique and transform the country into a regional energy hub. The rest of the project’s output is expected to be exported to neighboring countries, including South Africa, where demand for clean energy is high. The project will also accelerate the transition to clean energy to combat climate change in Southern Africa.

Related news: Mphanda Nkuwa Hydro & Hydrogen – Could Mozambique Become a Hydrogen Hub?

The estimated US$4.5 billion project will comprise a dam, a power-station, and a high voltage transmission infrastructure of 1,300 Km from the project site in Tete Province to Maputo, Mozambique’s capital. The project is scheduled for completion in 2031.

“Mphanda Nkuwa is poised to support the achievement of the Government’s vision of universal access to electricity by 2030, stimulate industrialization and boost growth through reliable transmission infrastructure and competitive power” said Carlos Yum, Director of Mphanda Nkuwa Hydroelectric Project Implementation Office.

Related news: Mozambique Will go to Tender for Construction of 1500MW Mpanda Nkuwa Hydroelectric Dam

“Clean and sustainable energy is a key driver of economic and social development. We are pleased to leverage IFC’s experience in developing and financing large hydropower projects in Africa and globally to boost Mozambique’s supply of affordable renewable energy and meet the country’s growing demand for power,” said Carlos Katsuya, IFC’s Senior Country Manager for Mozambique.

IFC will work with the government in collaboration with GMNK to structure this important project, including the review of technical design, environmental safeguards, commercial and financial structuring. The goal is to help mobilize competitive private investment to bring the project into commercial operation and support the country’s sustainable energy transition.

Author: Bryan Groenendaal

 

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