By Noémia Mendes
Maputo (MOZTIMES)—The Mozambican government has approved Electricidade de Moçambique (EDM) and Hidroeléctrica de Cahora Bassa (HCB) 's participation in the share capital of the Mphanda Nkuwa Hydropower Plant (CHMN). The government authorises both state-owned companies to subscribe up to 15% each, for a combined stake of 30% in the project’s operating company.
The decision, taken during the 24th Ordinary Session of the Council of Ministers, formalises a shareholding structure that had been under consideration since 2018, when then-President Filipe Nyusi tasked EDM and HCB with leading the project’s development. However, this is the first time the government has officially set out the terms of their participation.
With a planned generation capacity of up to 1,500 megawatts, Mphanda Nkuwa is seen as a flagship project for expanding Mozambique’s energy mix and consolidating the country’s position as a regional electricity exporter. Estimated to cost between USD 4.5 and 5 billion, the project includes the construction of a dam 61 kilometres downstream from the HCB dam, and a high-voltage transmission line of approximately 1,300 kilometres connecting Tete and Maputo.
The future plant will be managed by a special-purpose vehicle named MNK GenCo, in which a private strategic partner will hold the majority stake. This partner is expected to invest between USD 500 and 700 million. EDM and HCB, representing the Mozambican State, are expected to jointly contribute an estimated investment of between USD 250 and 350 million.
Since the establishment of the Mphanda Nkuwa Hydropower Project Implementation Office (GMNK), the initiative has received technical support from the World Bank, the African Development Bank, and the Southern African Power Pool (SAPP). One of the key milestones has been the launch of the international tender to select the strategic partner.
With this decision, the government reaffirms its intention to retain a significant presence in strategic assets within the energy sector. However, EDM and HCB's effective financial participation will depend on their ability to mobilise funding in a national context marked by fiscal constraints and high public debt. (NM)
