The Government held last Wednesday, September 29, a virtual conference to the international market with potential strategic and financial investors, for the development of MKN and associated energy transportation infrastructure.
Called "Potential Investors Market Sounding" or market sounding to potential investors, the event served to test the international market and was conducted through two virtual plenary sessions. In total, the sessions had 155 participants from 35 internationally renowned companies. Some of the companies are involved in power generation and transmission (most notably the Southern Africa Power Pool), and the remaining 12 are commercial banks and bilateral and multilateral financial agencies.
The survey aims to ensure that the selection process of the strategic and financial partner is attractive, competitive and participatory, given the size of the investment required, which is in the order of USD 5 billion, and the complexity of the associated legal and financial transaction.
"The Ministry took the decision to re-launch the 1 500 MW Mphanda Nkuwa Hydropower Project and associated transmission facilities last year and shortly thereafter we established and commissioned an independent technical team within the Mphanda Nkuwa Implementation Office (GMNK) and the national power utility, Hidroeléctrica de Cahora Bassa to lead the selection of a strategic partner for the implementation of the project," said Ernesto Max Tonela, Minister of Mineral Resources and Energy.
MKN will be located downstream of the existing Cahora Bassa dam and is of utmost importance to Mozambique as a reliable source of clean, low-cost electricity.
"We see this project as a prerequisite for accelerating economic growth and improving the standard of living for all our citizens," Tonela added.
Mphanda Nkuwa is an integral part of the Integrated Electricity Infrastructure Master Plan. According to the Ministry of Mineral Resources and Energy (MIREME), Mphanda Nkuwa is set to support the realization of the Government's vision of universal electricity access by 2030, stimulate industrialization, and drive growth through reliable transmission infrastructure.
Additionally, the project will create power export opportunities to strengthen Mozambique's position as a regional power center while ensuring security of domestic supply.
The next step will consist of launching the tender for selecting the strategic partner, scheduled for December of this year. The selection of the investor will be made in 2022, based on criteria of technical capacity, financial robustness and international experience in the development of hydroelectric projects.
The Mphanda Nkuwa Hydroelectric Project, with a run-of-the-river dam, will be located 61 km downstream of Cahora Bassa, on the Zambezi River, in Tete province. It will have an installed power production capacity of no less than 1,300 megawatts, of which 760 megawatts will be firm capacity.