CO-PARTNERSHIP SIGNED TO FINANCE REHABILITATION OF HYDROELECTRIC PLANT IN MOZAMBIQUE

Hidroeléctrica de Cahora Bassa (HCB) and AFD signed a EUR100M non-sovereign concessional loan agreement to contribute to the financing of the plant’s 10-year rehabilitation program, the “Capex Vital”. This program, aimed at extending the life of the plant equipment by at least 25 years, includes the refurbishment of the power plant and the electrical substation. It will improve operational reliability, reduce forced outages and maintenance costs, and restore international standard performance levels.

The loan is complemented by a EUR 22M European Union delegated grant to AFD, targeting additional components to increase the plant’s sustainability in the areas of reservoir water management, training, digitalization, and resilience of its infrastructure.

The AFD and EU financing will contribute to mitigating long-term operational risks and will help HCB maintain its position as key player and vital supplier of green energy in the region, as well as a strategic enterprise of the Mozambican economy.

This new partnership between AFD and the EU in the energy sector will contribute to the implementation of the Team Europe Initiative Green Deal, officially launched in Maputo on December 6, 2022, and the EU Global Gateway Strategy.

SOURCE: ClubofMozambique