The European Union (EU) and the European Investment Bank (EIB) will contribute €500 million to the financing of the Mphanda Nkuwa mega hydroelectric project in Mozambique. The announcement was made recently by the Mphanda Nkuwa Hydroelectric Project Implementation Office (GMNK).
More news on the Mphanda Nkuwa hydroelectric project. After awarding the contract to build the infrastructure to a consortium of at least two European companies, including France’s TotalEnergies and Électricité de France (EDF), the European Union (EU) and the European Investment Bank (EIB) have announced their participation in the financing of this project on the Zambezi River.
This was at a meeting on 5 June 2023 in the Mozambican capital Maputo between the Mphanda Nkuwa Hydroelectric Project Implementation Office (GMNK), an EU delegation and the EIB to discuss issues relating to the structuring and financing of the project. The two new partners will contribute up to €300 million to the development of the electricity transmission infrastructure. The 1,500 MW hydroelectric power station will be financed to the tune of €200 million.
An investment of 4.5 billion dollars
At the meeting with the EU delegation, “the entities were informed of the project’s progress, the update on the technical and environmental studies, the financing, the process for selecting the strategic partner, the energy market and the implementation schedule”, says the GMNK. This update was necessary in view of the estimated environmental and social impact of this hydroelectric project.
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The most direct consequence is the destruction of the irrigation systems located downstream of the dam. This upheaval will affect aquaculture in the Zambezi River delta. Worse still, the dam is expected to displace 1,400 families and affect the livelihoods of 200,000 people. The United Nations (UN) has expressed its disagreement with the project, describing it as “the least environmentally acceptable large dam project in Africa”.
In addition to TotalEnergie and EDF, the consortium in charge of financing and building the hydroelectric scheme includes Japanese companies Sumitomo Corporation and Kansai Electric Power. Construction of the Mphanda Nkuwa dam and power station will require an investment of $4.5 billion.
Jean Marie Takouleu
