- Mozambique’s tender launched on December 13, 2021 in Maputo for the selection of the strategic investor for the development of the 1500MW Mphanda Nkuwa hydroelectric project has been delayed.
- The project will be constructed on the Zambezi river around 60 kilometres downstream from the existing dam at Cahora Bassa in the western Mozambican province of Tete.
The tender was due to close 28th February, 2022 for the first stage. The deadline is now extended to 31st March 2022. The first stage of selecting the strategic partner will conclude with a short list of selected investors, through a pre-qualification process, based on technical and financial criteria.
In the second stage, the pre-qualified bidders will receive a specification with details on the financial model and the place of submission of the respective proposals, in a clear and detailed manner.
Asked about the reasons for the extension of the deadline, GMNK director general Carlos Yum explained that the institution had extended the period to allow interested companies to fulfil all the requirements set out in the specification.
“In short, the extension aims to guarantee the competitiveness and attractiveness of companies. In fact, it would be unfortunate to leave out, for example, seven large companies that are still waiting for the approval of the proposals,” Yum explained.
The director general of GMNK said that the extension of the deadline would not delay subsequent phases, and that, in April, once the period for expressions of interest is over, the GMNK would go ahead with the investor selection process.
After the selection process, an agreement for the development of Mphanda Nkuwa will be signed between the investor and the companies Electricidade de Moçambique (EDM) and Hidroeléctrica de Cahora Bassa (HCB), which represent the public sector in the project.
About the Project
Location: The Mphanda Nkuwa Dam will be located in Tete Province, Centro region, on the Zambezi River, 61km downstream of the Cahora Bassa Hydroelectric Power Plant.
Project description: The Hydroelectric Power Plant will have a capacity of up to 1,500 Megawatts and an Electric Power Transmission Line from Tete to Maputo with 1,300 kilometres.
Budget: US$4.5 to 5 billion, 60% for the construction of the dam and 40% for the power transmission line.
Strategic importance: The project will position Mozambique as an energy hub in southern Africa. It will provide lower cost energy in the country and region, contribute to universal access to energy in the country by 2030 and support rapid industrialization, with job creation, skills development and business opportunities (local content). Social and economic benefits, in the form of royalties and income on concession fees for the Mozambican state.
Environmental approach: The project will be implemented in strict compliance with national standards and internationally accepted best practices for the development of projects of this nature, to mitigate negative impacts and maximize positive aspects. In this context, the GMNK recently signed an agreement with the International Hydroelectricity Association for the assessment of the project’s sustainability, including training and capacity building.
Construction start date: After the financial close, scheduled for the end of 2024.
Construction period: Five to six years.
Key Information for Interested Parties:
- The Strategic Partner is expected to be the majority shareholder in the incorporated Project Company that will develop the Project and invest alongside the GOM owned entities Electricidade de Moçambique (EDM) and Hidroeléctrica de Cahora Bassa (HCB), who will be representing the public sector interest in the Project.
- The selection process will follow the procedure of a Tender by Prior Qualification.
- Interested parties will be able to obtain more information, examine and collect the RFQ by sending an email to mnk.investor@gmnk.co.mz. Upon receipt of the email, GMNK shall share details related to the payment of the non-refundable amount of MZN 32.000, equivalent to USD 500. Upon receipt of the payment by GMNK, the RFQ will be shared over email.
- The Statement of Qualifications, in response to and in accordance with the RFQ, must be submitted on or before 3pm, local time, on the 31st March 2022.
Author: Bryan Groenendaal
