An New Outlet for Cahora Bassa
The state-owned utility Electricidade de Mocambique (EDM) announced during a meeting of the Southern African Power Pool (SAPP) in Maputo in mid-November that Malawi would become a customer of Hidroelectrica Cahora Bassa, the firm that operates the dam of the same name, in 2009. To ensure deliveries a 200 km-long high voltage transmission line is to be built. Some 120 km of the line will lie in Mozambique.
The project, costing an estimated $60 million, will be financed on a 50/50 basis by the countries but could win loans, particularly from the European Commission’s Trust Fund for Infrastructure in Africa and the European Investment Bank. The agreement between HCB and Malawi had been under discussion for three years but had bogged down on the question of financing the operation. Selling its power to Blantyre will offer a new outlet for HCB. Its leading customers for the moment are South Africa and Zimbabwe. The latter country is far behind in payments to its Mozambique supplier.
HCB has belonged to Mozambique since it acquired an 85% stake from Portugal for EUR750 million under an agreement between Maputo and Lisbon in early November.
Indian Ocean Letter - 13.12.2006
