The promoter of the hydroelectric project in the center of the country announced on Wednesday the disbursement of 500 million euros for the development of the Mphanda Nkuwa dam. The funding has been made available by the European Union (EU) and the European Investment Bank (EIB).

According to the Mphanda Nkuwa Hydroelectric Project Implementation Office (GMNK), a total of 300 million euros will be earmarked for the high-voltage line - of which 50 million euros is a donation - and the remaining 200 million euros will be used for the hydroelectric plant.

Recently, the Mozambican government announced that a consortium led by Electricité de France (EDF) and including oil company TotalEnergies had been chosen as the "preferred bidder" to implement the project under a concession regime.

At the moment, the project is in the fundraising phase until the `financial close' is reached (initially scheduled for August 2024), at which point the project is considered to have the funds it needs to go ahead and start operating by 2030.

The Mphanda Nkuwa project is estimated to cost 4.5 billion dollars and is to be built 61 kilometers downstream from the Cahora Bassa hydroelectric plant on the Zambezi River in Tete province.

"The project will be the lowest cost option for energy production" and should strengthen Mozambique's position in the area of energy exports as a "regional energy hub", the office points out, adding that "it will be fundamental to the process of energy transition and decarbonization of the southern region of the African continent".