The Mozambican government has secured a US$99.7 million soft loan from the Islamic Development Bank (IDB) to be used to finance the construction of a 400 kilovolt electricity transmission line from Temane in Inhambane province to the capital Maputo, energy minister said on Friday.
Mineral Resources and Energy Minister Ernesto Max Tonela said the IDB loan would assist in alleviating electricity shortages in the southern region of Mozambique.
He said the total cost of the transmission line is US$550 million and the World Bank had already promised a loan of US$420 million while Norway had provided a grant of US$30 million.
“Thus, with the new loan from the IDB, the total amount required is now available,” Tonela said.
The 560-kilometre transmission line, including three new sub-stations along its route, is expected to link the proposed 400 megawatt gas-fired power station in Temane to the national grid in Maputo.
The power station is being jointly developed by state-owned utility Electricidade de Mocambique (EDM), South African integrated energy and chemicals firm Sasol and independent power producer Globelec Africa.
Sasol operates the natural gas fields of Temane and Pande.
The Temane Transmission Project is the first phase in what has become known as the “backbone” of Mozambique’s electricity transmission system.
The new transmission line is an initiative of the Mozambican government and EDM and is expected to ensure greater availability of electricity for various social and economic projects in Inhambane, Gaza and Maputo provinces, and provide power for more connections to domestic consumers.
When complete, this will link Maputo to the Zambezi Valley in Tete province where the Cahora Bassa Dam, by far the largest generator of power in the country, is located.
CM/jn/APA