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Bank helping to deliver electricity more effectively in Mozambique
The Mozambican Government seeks to provide universal access to electricity for economic development. To that end, the Electricity IV project was co-financed by the African Development Bank, the Government of Mozambique and the OPEC Fund for International Development. Implemented for over 10 years, the project was completed in 2017.
The project provided a transmission line connecting Chibata and Dondo Districts, in the centre-north of Mozambique’s Sofala Province. The line provided new electricity connections that spurred industrial growth, job creation and economic growth in both Manica and Sofala Provinces, benefitting 822,347 people. Access to electricity for agricultural holdings and small businesses enabled them to mechanize and boost commodity processing and strengthened the economic fabric along the Beira Corridor.
On May 14, a project evaluation workshop brought together the permanent secretary of Mozambique’s Ministry of Mineral Resources and Energy, Pietro Toigo, Manager of the Bank’s Mozambique Office; Mateus Magala, President of Mozambique Electricity; and partners who are active in the energy sector – the World Bank, the European Union, the Governments of Norway and Sweden, the Japanese International Cooperation Agency – and project technicians, consultants and contractors.
Workshop participants identified several areas for potential improvement, including training and capacity-building, compliance review, project performance, procurement, effectiveness, loan extension and high impact improvement strategies.
Recommendations for future projects included advance procurement, the use of the Project Preparation Fund, due diligence on external consultants recruited through a competitive process, parallel financing rather than pure co-financing, and improving material tests at the factory.
Toigo summed up the steps needed to be a good partner for Mozambique. “In line with President Adesina’s agenda for a new business delivery model, our aim is to continue to improve effectiveness as a partner in the energy sector to the Government of Mozambique. We must therefore maximize the quality of our portfolio, minimize approval times, and speed up disbursements as stepping stones to achieving universal access to energy in Mozambique.”