IFC and Mphanda Nkuwa Implementation Office sign agreement to support the development of the 1,500 MW Hydropower project in Mozambique
FILE - Illustrative photo. [File photo: DW]
To increase access to clean energy in Mozambique and other Southern African countries, IFC and the Ministry of Mineral Resource and Energy (MIREME), through the Mphanda Nkuwa Hydroelectric Project Implementation Office (GMNK), today announced a collaboration to develop a 1,500-megawatt hydropower project and associated transmission facilities.
Once complete, the Mphanda Nkuwa Hydropower Project is expected to supply power to meet the growing domestic demand in Mozambique and transform the country into a regional energy hub. The rest of the project’s output is expected to be exported to neighboring countries, including South Africa, where demand for clean energy is high. The project will also accelerate the transition to clean energy to combat climate change in Southern Africa.
The estimated US$4.5 billion project will comprise a dam, a power-station, and a high voltage transmission infrastructure of 1,300 Km from the project site in Tete Province to Maputo, Mozambique’s capital. The project is scheduled for completion in 2031.
“Mphanda Nkuwa is poised to support the achievement of the Government’s vision of universal access to electricity by 2030, stimulate industrialization and boost growth through reliable transmission infrastructure and competitive power” said Carlos Yum, Director of Mphanda Nkuwa Hydroelectric Project Implementation Office.
“Clean and sustainable energy is a key driver of economic and social development. We are pleased to leverage IFC’s experience in developing and financing large hydropower projects in Africa and globally to boost Mozambique’s supply of affordable renewable energy and meet the country’s growing demand for power,” said Carlos Katsuya, IFC’s Senior Country Manager for Mozambique.
IFC will work with the government in collaboration with GMNK to structure this important project, including the review of technical design, environmental safeguards, commercial and financial structuring. The goal is to help mobilize competitive private investment to bring the project into commercial operation and support the country’s sustainable energy transition.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
GMNK – Mphanda Nkuwa Hydropower Project Implementation is a dedicated office created by Ministry of Mineral Resources and Energy (MIREME), through Ministerial Diploma 18/2019 of 7 February. GMNK is mandated for the development of the Mphanda Nkuwa Hydropower Project and the associated energy transmission infrastructure. GMNK was established and tasked to lead on the selection of a strategic partner to implement the project and updating existing technical studies all based on competitive procurement process and following the best international practices. GMNK is committed to ensure that the Mphanda Nkuwa Project is implemented within a sustainability and the highest social, environmental and governance standards and tools.
Source: IFC and GMNK / Press Release