The state-owned utility Electricity of Mozambique (EDM) announced the implementation of an electrification project of the Maputo through a line of credit from Exim Bank of India. Exim Bank of India (Export-Import Bank of India) the premier export finance institution of India has been a catalyst and a key player of Indian investment in Mozambique.
10.4.13 – The public company Electricity of Mozambique (EDM) announced the implementation of an electrification project of the Maputo region budgeted at $ 250 million. The project which is expected to start before the end of this year, is funded by the Indian government through a line of credit from Exim Bank of India. Inc. The project includes among others, technical consulting, project management and commissioning work including management during the the warranty period. Regarding the transmission, it is foreseen the construction of underground networks among others. All work will be contracted on “turn-key” basis and the international tenders will be restricted to the Indian suppliers under regulations of Mozambique similar to those of World Bank. The investment was announced by Chairman of the Board (PCA) of EDM, Augusto de Sousa Fernando, at a press conference recently.
“Our idea is to start the project next June and that the works will be extended until 2016,” said Sousa, cited by Mozambican news agency AIM. At the time, Sousa said that the project is in the preparation of documentation, which will be followed by a tender for the selection of the general contractor.
The PCA of EDM said that this project will “help a lot” to meet the needs of energy consumption resulting from the numerous new works underway in Maputo, but warned that it is not just with this investment that will solve the problem of power quality.
“Maputo is growing, similar to the the whole country and always need new investments on a regular basis to meet the growing demand for energy,” he said .As example, Fernando pointed the northern region of the country – particularly the region of Nacala – whose consumption grew by 26 percent last year.
“We need new investment to the region, where it is necessary to build a second line and that projects are expensive,” he said. “Associated with these projects, it is necessary to build more plants, since it is not enough to have transmission lines without energy plants , “the source added, indicating that such investment will help meet the increasing rate of energy consumption.
Currently, the access rate of electrification in Mozambique is 23 percent, according to the PCA of EDM. Last year, the company made about 130 thousand new connections and therefore needs new infrastructure to match this rate of growth.
AIM / Lusophone Society of Goa (LSG)