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Mozambique: African Development Bank contributes to major power transmission line

30-Aug-2019

The African Development Bank is to part-finance the construction of a 563 km power transmission line in Mozambique, after signing the agreement on 28 August to start the Temane transmission project, approved by the Board in July. The Bank will contribute $33 million in grants to the project.

This transmission line will run from Vilanculos (Temane) in Inhambane province to Maputo, connecting Mozambique and South Africa. It will expand access to the energy to be supplied from Temane gas power plant and contribute to integration of the regional energy markets by supplying the Southern Africa Power Pool. The National Energy Transport Company will implement the project.

“This initiative plays a significant role in the country’s development through industrialisation, which will lead to economic and social transformation, as well as regional integration,” said Filipe Jacinto Nyusi, the president of Mozambique, who presided the ceremony

Speaking at the signing ceremony, Pietro Toigo, the Bank’s country manager, said “With this decisive contribution to Mozambique’s national grid, the Bank will help to achieve the national development plan to have universal access to energy in Mozambique by 2030.”

The project is co-financed by the African Development Bank in collaboration with the World Bank, Islamic Development Bank, Development Bank of Southern Africa, Kingdom of Norway and OPEC Fund for International Development, for a total of $552 million.

The construction will commence in July 2020 and will be completed by December 2023. It will increase the amount of energy available to the southern region of the country. This is the first phase in the construction of the backbone line, which also aims to connect the central and southern regions of the country through a power transmission line.

The project will contribute significantly to the strategic energy sector plan’s objectives, which prioritise the sustainable expansion of the national energy transmission network, anchoring the significant gas resources of the country to contribute to the quality of life and socio-economic development of Mozambique.

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