The International Finance Corp which is a member of the World Bank Group has just agreed to issue development funding for Chimuara-Nacala Transmission Line Project that will strengthen Mozambique’s overall grid.
British International Investment Plc’s Gridworks Development Partners LLP and state-owned Electricidade de Moçambique are developing the $400 million Chimuara-Nacala line. Additionally, this line is the first privately financed transmission project in Mozambique.
Chimuara-Nacala Transmission Line Project Factsheet
Name: Chimuara-Nacala Power Transmission Project
Location: the transmission line project spans central and northern Mozambique. It connects Chimuara in Sofala Province to Nampula and Nacala in Nampula Province.
Key components:
Transmission Lines:
- 400kV transmission line that will run from Alto Molócuè to Namialo (272 km).
- 220kV transmission that will link Namialo to Nampula (98 km).
- 220kV transmission line that will connect Namialo to Nacala-à-Velha (90 km).
- Total length of new infrastructure: approximately 460 km.
Substations:
- Two new substations will be built at Namialo and Nacala-à-Velha.
- Nampula substation will undergo expansion
- Upgrade of the existing 220/110 kV Alto Molócue substation into a 400/220/110 kV substation.
Phases: the transmission line project is being built in three phases
- Phase I: Construction completed by Electricidade de Moçambique (EDM).
- Phases II and III: it is currently under development. Also, this phase is receiving significant international funding and support.
Developer: Gridworks Development Partners
Financiers: International Finance Corporation, African Development Bank, Japan International Cooperation Agency, and US International Development Finance Corporation (DFC).
Consultants/contractors:
- Dar Al-Handasah: this company provided project management and value engineering services.
- Elecnor: also, this company was involved in building the substations.
- JGP Consultoria Ambiental: they were responsible for Environmental and Social Impact Assessment (ESIA) and Resettlement Action Plan (RAP).
Also read: Mozambique’s $551 Million Maputo-Temane Powerline Construction Complete
IFC and Gridworks Reach an Agreement on the Project
Furthermore, IFC reached and signed an agreement with Gridworks to “share a part of the project development costs”. Also, they would provide support for the project financing. This information was revealed by the two companies in a statement on Tuesday. However, they did not indicate how much the IFC will provide.
The Chimuara-Nacala project is designed to improve reliability of the national grid. Additionally, it will enable the connection of more renewable capacity and grow industrial development. Lastly, the 460-kilometer line is expected to connect the central regions to the northern regions of Mozambique.
Also read: African Development Bank Approves $43.6M Funding for the Mozambique Transmission Line Project
