EDF-led Team Preferred Bidder For Mozambique Hydro Scheme

The 1,500MW Mphanda Nkuwa plant will also supply South Africa.

By Liz Bains on
2nd June 2023

Mozambique has reportedly selected a consortium comprising France’s EDF, TotalEnergies, and Sumitomo of Japan as preferred bidder to become the strategic partner in the 1,500MW Mphanda Nkuwa hydropower project.

According to the publication Expresso50, the Ministry of Energy and Mineral Resources revealed the decision on 26 May at a press conference in Maputo.

The qualification phase for the US$4.5 billion project was launched in June 2022. Two consortiums were eventually shortlisted and invited to submit technical, economic and financial development proposals by 10 March 2023.

The other shortlisted consortium comprised ETC Holdings (Mauritius), ZESCO Limited (Zambia), CECOT (subsidiary of Portugal’s Mota Engil) and PetroSA (South Africa). This consortium is now considered the reserve bidder.

The successful bidder will become a strategic partner in the project holding 70% of shares, with Electricidade de Moçambique (EDM) and the Cahora Bassa Hydropower Plant owning the remaining 30%. The strategic partner will invest US$500-700 million in the project.

Financial close and construction are targeted for 2024, with completion by 2031. Negotiations will now follow, with a contract signing slated for July.

The International Finance Corporation and the African Development Bank are supporting the scheme.

The construction work will include a run-of-river dam on the Zambezi River, 61km downstream of Cahora Bassa, a power plant, and 1,300km high-voltage transmission line from the project site in Tete Province to Maputo.

The power plant will supply electricity to the Southern Africa Power Pool as well as to Mozambique.

Photo: Turbine room (© James Davidson | Dreamstime)

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