Mozambique says Brazil firm signs agreement on $3bn dam
Mozambique's government said on Monday a Brazilian firm had signed a memorandum of understanding to invest $3,2-billion in a new dam that would provide energy to southern Africa.
Mozambique's Planning and Development Minister Aiuba Quereneia said private engineering and construction firm Camargo Correia would build and possibly operate the dam in northern Mozambique's Tete province. But the company still needed to find funding for the project, he said.
"We would want the building of the dam to begin at least by July next year as part of our strategy to secure Mozambique and the region´s energy needs," he said, adding he expected a final contract to be signed shortly.
The dam would have production capacity of 1 500 MW of electricity, about 1 000 MW of which will be exported to countries in southern Africa, including South Africa, the continent's biggest economy.
It will lie 60 km from Mozambique's major dam, the Cahora Bassa Hydroelectric (HCB) plant, which produces 2 075 MW of electricity and sells most of it to South Africa and Zimbabwe.
The government has invited foreign investors to build hydropower projects in 100 locations with a total estimated hydroelectric potential of up to 14 000 MW.
Mozambique hopes the new plant will be finished in 2013.
