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high voltage, mozambique
A loan aimed at refinancing MOTRACO’S investment in South Africa's energy transmission line to Swaziland and Mozambique.
Context

The Mozambique Transmission Company (MOTRACO) was founded in 1998 as a joint venture between the three electricity companies of Mozambique (Electricidade de Moçambique - EDM), South Africa (ESKOM) and Swaziland (Swaziland Electricity Company - SEC). The aim of this joint venture is to provide efficient energy transmission and services to businesses and ensure acceptable returns for its shareholders.

Description

Revenues generated by MOTRACO’s sale of energy to the Mozal aluminium smelter plant, 20km outside Maputo, even out the cost of electricity purchased from ESKOM. Energy transmission revenues cover the amortization of credits, financial expenses, and operating costs. The management, maintenance and control of the network have been outsourced to ESKOM.

The first phase of investment, worth US$ 93 million, was completed in mid-2000. Interconnection benefited Mozambique and Swaziland by improving the quality of electricity distributed to the population in those countries.

The increase in Mozal’s operation required strengthening MOTRACO’s interconnection in order to increase the available energy from 425 MW to 850 MW.

Impacts

The project will provide Mozal with a reliable supply of electricity to meet its increased production, at the same time as strengthen the energy supply networks of Swaziland and Mozambique, ultimately improving the living conditions of people in both countries.

For the two countries’ national electricity companies, the project will help lower the cost of energy and increase its availability, as well as increase the reliability and security of interconnected systems in the region.

01/10/2003
Project start date
31/12/2006
Project end date
16 years
Duration of funding
Sectors
Swaziland, Mozambique, South Africa
Location
Financing tool
12 500 000
EUR
Financing amount
Achevé
Status
MOTRACO
Beneficiaries
European Investment Bank (EIB) The World Bank The Arab Fund for Economic and Social Development
Co-financiers