The government, represented by the Mphanda Nkuwa Hydroelectric Project Implementation Office (GMNK), Electricidade de Moçambique (EDM), Hidroeléctrica de Cahora Bassa (HCB), and the Strategic Partner signed two Partnership Agreements for the Implementation of the Mphanda Nkuwa Hydroelectric Project in Maputo today, formalizing the partner's entry into the project.

This is the start of a major public-private partnership that will enable the implementation of a hydroelectric project that will generate 1,500 megawatts of energy for Mozambique, as well as for the countries in the region.

With an estimated cost of 5 billion US dollars, the Mphanda Nkuwa hydroelectric project includes the development of a run-of-river dam, located 61 km downstream from Cahora Bassa, on the Zambezi River, in Tete province.

A hydroelectric power station with an installed power generation capacity of up to 1,500 megawatts and a high-voltage power transmission line from Tete to Maputo of approximately 1,300 kilometers.

"The signing of these agreements is in itself a historic milestone and an unquestionable demonstration of the government's commitment to this process and the project," said Carlos Yum, director-general of the Mphanda Nkuwa Hydroelectric Project Implementation Office.

Present at the ceremony, the President of the Republic, Filipe Nyusi, said that the agreements now signed formalize the entry of a strategic partner in the Mphanda Nkuwa hydroelectric project, and that EDM and HCB will be joining forces to "make this long-held dream of Mozambicans come true".

The project will be the lowest cost option for energy generation. It will position Mozambique as a regional energy hub, contribute to universal access and industrialization, technical training and energy exports.

"The signing of these agreements is in itself a historic milestone and an unquestionable demonstration of the government's commitment to this process and the project."

According to Nyusi, the Mphanda Nkuwa project will be fundamental to the process of energy transition and decarbonization in the southern region of the African continent.

"We want Mphanda Nkuwa to be a key element in Mozambique's and the region's energy transition process, through the provision of clean energy, while at the same time playing an important climate change mitigation role aimed at achieving carbon neutrality by 2050," said the Head of State during his speech.

The President said that the choice of the consortium for the implementation of the project dictated the guarantee of the use of global standards and tools for social and environmental sustainability, as well as the evaluation and certification of the project, which favoured the creation of opportunities for local communities and minimized and mitigated the adverse impact on biodiversity heritage, among other aspects.

"We want Mphanda Nkuwa to be a key element in Mozambique's and the region's energy transition through the provision of clean energy,

Nyusi said that the project could generate revenue for the government from taxes, concession fees and create quality jobs in the short, medium and long term.

During the construction phase, there is talk of around 7,000 direct jobs, of which at least 95% will be occupied by Mozambicans.

For his part, the Ministry of Mineral Resources and Energy, Carlos Zacarias, praised the project's potential, considering it a lever for the beginning of a new era of renaissance for hydroelectric projects in Mozambique.

"This is the first concrete step for Mozambique to capitalize on the immense hydroelectric potential of the Zambezi River and the country's other energy resources, provide low-cost electricity for our population and industry, and position itself as a regional exporter of clean, renewable energy," said Carlos Zacarias.

Chrysoula Zacharopoulou, France's Minister of State, believes that the project is a powerful example of the ambition that "we share with Mozambique, to ensure that our partner is able to provide clean energy to all its citizens, and to exploit its full potential in renewable energies. We are confident that Mozambique will soon be among the leaders in hydropower in the region," said Chrysoula.

"This is the first concrete step for Mozambique to capitalize on the immense hydroelectric potential of the Zambezi River and the country's other energy resources, providing low-cost electricity for our population and industry,

It should be noted that the project timetable calls for the first turbine to start operating in 2031. The selection of the strategic partner and the signing of the agreements are the result of a competitive, rigorous and transparent process that began in June 2022.