The Government of Mozambique has reportedly started the construction of the $1bn Temane Thermal Power Plant and Temane Transmission line projects.
The projects, located in the southern province of Inhambane, are aimed to improve the country’s energy supply.
President Filipe Nyusi said: “Today we mark a milestone in the framework of this endeavour to illuminate Mozambique.
“Our governance aspires that more than 10 million Mozambicans will have access to electricity for the first time in their homes by 2024.”
The two projects are financially backed by the World Bank, the US, Norway, African Development Bank (AfDB), Islamic Bank and The OPEC Fund for International Development.
The Temane Transmission project will involve building 563km of a 400kV, single-circuit power transmission line between Maputo and Vilanculos near Temane. The gas-to-power Temane Thermal plant will have 450MW of energy generation capacity.
The two projects collectively comprise the Temane Regional Electricity Project.
US Ambassador to Mozambique Dennis Hearne said that the US is providing a $200m direct loan to the Temane project for its construction via the US International Development Finance Corporation.
Mr Hearne said: “Thanks to the support of the US Government’s signature Power Africa programme, we are providing a ‘transaction advisor’ assigned to [Mozambique power utility] Eletricidade de Moçambique to help bring the critical Temane Transmission Line Project to financial close.”
With these two projects, Mozambique’s government aims to enhance the transmission capacity for domestic and regional markets and increase the electricity generation capacity through private sector participation.