Mozambique: The Government of Mozambique, Electricidade de Moçambique (EDM) and its project partners have announced that funding for the development of the Temane Regional Electricity Project (TREP), has been secured.
The project involves the construction of a 400 kV high voltage transmission line, stretching from Vilanculos to Maputo, along with three new substations at Vilanculos, Chibuto and Matalane and upgrades to the Maputo substation. The transmission line will then connect to the new 420 MW gas-fired power plant to be constructed at Temane, for which a separate financing process is currently underway.
The total funding facility of nearly $543 M for the transmission line and related includes a $300 M grant from the World Bank; a $24 M grant from the Norwegian Trust Fund; a further $33 M grant provided by the African Development Bank; a $99.7 M lease and loan through the Islamic Development Bank; and a contribution from OFID of $36 M.
In addition, the total funding facility is expected to secure a $50 M loan from the Development Bank of Southern Africa (DBSA) in partnership with the European Union through its Infrastructure Investment Programme South Africa (IIPSA).
Source: ESI Africa