Mozambique is set to receive US $420m in grants from the World bank to strengthen its energy transmission system for domestic and regional markets.
The funds is set to be issued through private sector investments and the project dubbed’ Temane regional electricity project (TREP)‘ will be co funded by a US $24m grant from a Norwegian Trust Fund.
“It is fundamental to developing the Mozambican domestic power system, expanding energy access, and ensuring the secure, affordable, and sustainable power supply that is one of the key drivers of Mozambique’s economic and social development”, said Mark R. Lundell, the World Bank Country Director for Mozambique.
Energy transmission upgrades
The project includes the construction of a 563km high-voltage line between Maputo and Vilanculos/Temane. It will also involves the construction of a 400MW combined cycle gas-to-power generation plant at Temane.
TREP will enable private investment of around US $750m for generation. According to Zayra Romo, the project’s senior energy specialist and task team leader, TREP will finance technical studies in support of regional power integration and renewable technologies in power system planning and operation, including Mozambique’s role in regional trading.
“The Temane project plays a major role in increasing opportunities for power trade among SAPP countries. Despite the abundance of energy resources in the sub-region, lack of cross-border interconnections remains a major constraint. The full integration of SAPP countries’ power systems and more power trade could bring savings of US $42bn in investment and operating costs till 2040. The Bank is committed to helping southern Africa realize these potential savings”, commended Deborah Wetzel, World Bank Director for Regional Integration for Africa, the Middle East and Northern Africa.