State could raise 8 billion dollars with new Port of Maputo concession

Estado pode arrecadar 8 mil milhões de dólares com nova concessão do Porto de Maputo

The Mozambican state could raise around eight billion dollars by extending the concession contract for the Port of Maputo, the Director General of the Port of Maputo Development Company revealed on Wednesday (21).

The government has decided to extend the concession contract for the Port of Maputo for another 25 years, starting in 2033. The investments are estimated at 2.6 billion dollars.

"We expect to make a return of around eight billion dollars in this period until the end of the concession [in 2058]. And this has all been duly demonstrated and modeled. It's in the financial models that have been made available to the state," said Osório Lucas.

Speaking to the press, the head of the Port of Maputo said that the return for the state was one of the criteria for extending the contract.

He said that this money will reach the state coffers through concession rents, dividends to the Caminhos de Ferro de Moçambique company, and direct and indirect taxes generated as a result of the Port of Maputo's activities.

"The higher Porto's revenue, the higher the public revenue, because the state collects rents based on Porto's revenue. This is a true Public Private Partnership, in which we are given an asset, the private sector invests, and the state makes a return," he said.

According to Osório Lucas, this concession will have a multiplier effect for the state through extra-contractual activities, i.e. social activities.

"What truck drivers generate for the economy. What the fuel stations benefit from as a result of the activity," he said, stressing that the eight billion dollars planned for the state only concerns activities within the Port of Maputo.

On the other hand, the concession is expected to create 1,000 direct jobs, "on top of the 2,000 that are already here", and around 5,000 indirect jobs over the next 25 years.

"There is no expectation and there is no plan for the state to channel any money into this investment. So there is no burden on the state," he said.

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