All photos: Gabinete de Implementação do Projecto Hidroeléctrico de Mphanda Nkuwa (GMNK)
A delegation from the African Development Bank (AfDB), including the AfDB Regional Manager, energy specialists, investment experts, engineers, financial analysts, climate change and environmental experts, gender specialists and procurement officers, conducted a working visit to the Mphanda Nkuwa hydroelectric project from 6 to 10 October.
The mission aimed to discuss the AfDB’s proposed support for Partial Risk Guarantees and closely monitor the development of the power transmission infrastructure.
During the mission, the bank’s specialists visited the site of the future Mphanda Nkuwa dam in Tete Province to better understand the implementation stage of the project, particularly environmental and social aspects, and to engage with provincial authorities, including the Governor and the Provincial Secretary of State, as well as Cahora Bassa Hydroelectric.
Following the visit, the bank’s specialists held separate meetings with the Ministry of Mineral Resources and Energy, Ministry of Finance, National Directorate of Lands and Territorial Development, Directorate of Environment and Climate Change of the Ministry of Agriculture, Environment and Fisheries, the Mphanda Nkuwa Hydroelectric Project Implementation Office (GMNK), Electricidade de Moçambique and the Energy Regulatory Authority.
The meetings focused on reviewing prior actions required by key government institutions and stakeholders, assessing the stage and compliance of main studies, resource mobilisation plans, risk assessment, and review of related instruments. During the meetings, the bank affirmed that it has no doubt the project will move forward and will be a strategic undertaking for Mozambique and the region.
In 2022, the AfDB and GMNK signed an agreement in Accra, Ghana, for consultancy services to support the development of the 1,500 Megawatt (MW) Mphanda Nkuwa Hydroelectric Project and associated power transmission infrastructure. Under the agreement, the AfDB has already supported the project by reviewing the terms of reference for technical studies, providing technical and financial assistance, capacity building, advisory, and consultancy services.
About Mphanda Nkuwa
With an estimated cost of 6 to 7 billion US dollars, the Mphanda Nkuwa Hydroelectric Project includes the development of a run-of-the-river dam, located 61 km downstream of Cahora Bassa on the Zambezi River in Tete Province. The project will feature a hydroelectric power station with an installed capacity of up to 1,500 Megawatts and a high-voltage power transmission line from Tete to Maputo of approximately 1,300 kilometres.
The project is being developed in line with the International Finance Corporation Performance Standards (IFC PS 2012), with particular attention to human rights, environmental protection, and improving the livelihoods of local communities. It also follows national and internationally accepted social, environmental, and governance (ESG) standards and tools to mitigate negative impacts, maximise positive outcomes, evaluate and certify the project, prioritise opportunities for local communities, and minimise, mitigate, and offset potential adverse impacts on biodiversity heritage.
By complying with all applicable national and international regulations, the project team is committed to engagement throughout the project development process in a transparent and inclusive manner with all stakeholders, especially communities affected by the project, whose views will be carefully considered in decision-making.
The project will be a low-cost energy generation option. It will position Mozambique as a regional energy hub, contribute to universal access and industrialisation, create jobs, build technical capacity, and enable energy exports. The Mphanda Nkuwa project will be fundamental to the energy transition and decarbonisation of Southern Africa.
