Mozambique: Temane-Maputo Transmission Line Project Reaches Financial Close

  • Financing contracts to the value of US 506.7 million for the Temane-Maputo electricity transmission project were signed on Wednesday in Maputo between the government of Mozambique and a number of foreign finance institutions.
  • The transmission line project from Temane to Maputo will stretch 563 kilometres.
  • The new line will transmit power from the natural gas-fired 400MW Temane Thermal Power Plant to Maputo.

Construction of the US 551.2 million transmission line is scheduled to start in the first half of 2020 and completed at the end of 2023. The construction will be carried out in three lines; 340km will stretch between Vilanculos-Chibuto (provinces of Inhambane and Gaza), 180 kilometres on the Chibuto-Matalane section (Gaza-Maputo) and 43 kilometres on the Matalane-Maputo section.

Foreign institutions involved in the financing are the  Government of Norway, the World Bank, the African Development Bank, the Islamic Development Bank, the Organisation of Petroleum Exporting Countries Fund and the Southern African Development Bank.

The Mozambican President, who spoke at the time, said that the construction of the Temane-Maputo line is the first phase of the Tete-Maputo line, also called the “backbone” of the country, which will allow the development of integrated electrical infrastructures that will bolster the industrialisation of Mozambique and Southern Africa.

The 420 MW gas-fired power project is located at Temane in Inhambane Province in Mozambique.  Originally developed by EDM and Sasol New Energy Holdings, Globeleq is lead developer along with its consortium partner, eleQtra in the Temane Energy Consortium (TEC).

The project will supply low cost, reliable power to EDM through a 25-year tolling agreement using natural gas supplied from the Pande-Temane fields operated by Sasol and ENH, the state-owned hydrocarbon company.  TEC will also provide support to EDM in the development of the Temane Transmission Project.

Related News: South Africa’s Transnet Mobilsing to Import Gas from Mozambique 

Author: Bryan Groenendaal

Source: Opias

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