CAPEX Vital Program for the Cahora Bassa Hydro Power Plant

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. 

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.

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.