AFD and the European Union work together with the Mozambican company Hidroeléctrica de Cahora Bassa’s (HCB) on the Capex Vital Program. Co-financed by AFD and the EU, this program is dedicated to increasing the HCB power plant’s sustainability.
Context
HCB is the concessionaire of the largest dam and power station in Mozambique, situated on the Zambezi River and has been operating it since 1979. With an installed capacity of 2,075 MW and average annual production of around 15 TWh, HCB is the main electricity producer in Mozambique and a major player in the energy sector in Southern Africa. The role of HCB is key in a region facing increasing demand and lack of energy capacity, especially from renewable sources.
Description
HCB, established in 1977, needs to replace some of its ageing equipment and adapt its operation to new challenges such as climate change. HCB has consequently developed a 10-year investment program for the refurbishment and upgrade of its infrastructure (CAPEX Vital Program). The investment includes the refurbishment of the hydroelectric power plant and of the electrical substation. HCB will also invest in systems to improve the reservoir’s water management, increase the resilience of its infrastructures, and reinforce its training capacity.
AFD has committed a non-sovereign concessional loan of €100 million with a 15-year maturity period, as well as a delegated grant from the EU of € 22,1 million in order to support HCB in this program.
Impacts
The CAPEX Vital Program investment will extend the useful life of the Cahora Bassa dam and its substation by at least 25 years. The investment will also improve its operational reliability, reducing forced outages and maintenance costs, and restoring international standard performance levels. The project will mitigate long-term operational risks and help HCB maintain its position as key player and vital supplier of green energy in the region, as well as a strategic enterprise for the Mozambican economy.
This project is carried out with the support of the European Union
01/12/2022
Project start date
01/12/2037
Project end date
15 years
Sectors
Songo, Tete Province
Financing tool
122 100 000
EUR
Ongoing
Hidroeléctrica de Cahora Bassa
The content of this project information sheet falls under the sole responsibility of the AFD and does not necessarily reflect the opinions of the European Union.
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