Mozambique’s Floating Power Station Energy Supply Agreement with Zambia is Terminated

  • EDM, Mozambique energy utility has terminated export of electricity to Zambia’s Electricity Supply Corporation (ZESCO) over outstanding debt.

Back in March 2016, Mozambican president Filipe Nyusi and his Zambian counterpart Edgar Lungu launched a 100MW floating power station in Nacala, Northern Province of Nampula to much fanfare. The initiative was to boost power supply between the two neighbouring countries.

The supply agreement between the two countries has now formally ended with Mozambique’s power utility still owed 3.7 billion meticais (US 57 million).

The deal started to go sour back in December 2016 when EDM suspended supply to Zambia over accumulated debts amounting to 6.7 billion meticais (US 104 million).

Following negotiations involving the governments of both countries, ZESCO amortised a portion of the accumulated debt, but by 31 December 2017 it still owed 3,694,194,092 meticais. EDM has since been left with the burden of debts relating to the Karpower Floating Thermoelectric Plant.

Author: Bryan Groenendaal

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