The French Development Agency (AFD) and the European Union will disburse a total of 122 million euros to finance a rehabilitation program for the Cahora Bassa Hydroelectric Plant in Mozambique..

"This program, designed to extend the useful life of the plant's equipment by at least 25 years, includes the refurbishment of the plant and the electrical substation," says a statement from the European Union.

Of the total amount, 100 million euros comes from the AFD, a "non-sovereign concessional loan that will be complemented by a delegated grant from the European Union of 22 million euros, also through the agency.

The rehabilitation of HCB's infrastructure will "improve operational reliability, avoid interruptions and reduce maintenance costs", as well as guaranteeing international standards, the document quoted by Lusa stresses.

"AFD and EU funding will help mitigate long-term operational risks and help HCB maintain its position as a key player and vital supplier of green energy in the region, as well as a strategic enterprise for the Mozambican economy," the document reads.

HCB, a company majority owned by the Mozambican state, is the largest energy producer in southern Africa and supplies Mozambique, South Africa and other countries in the Southern African Development Community (SADC).

The company has investments underway: at the end of last month, the African Development Bank announced a loan of 125 million euros to HCB to support the modernization program of the electricity generation system.