$129 M upgrade to stabilise energy supply in the SADC
The African Development Bank has approved a $129 M loan for a hydroelectric power producer to modernise its production system.
Image source: ESI Africa
Mozambique: The African Development Bank has approved a $129 M loan for a hydroelectric power producer to modernise its production system.
This is in line with Hidroeléctrica de Cahora Bassa’s (HCB), the largest independent power producer (IPP) in Southern Africa, Vital Capex programme. HCB provides hydroelectric power to Mozambique and the Southern African Development Community (SADC).
The package comprises up to $103 M from the African Development Bank and up to $25.9 M from the Africa Growing Together Fund.
The modernisation will extend the life of the plant by at least 25 years, enhance the reliability of energy delivery and reduce outages. It will also enable the company to fulfil its contractual obligations to off-takers and enhance regional integration of the electricity sector in SADC. It will also ensure the sustainability of energy security of the community, particularly in South Africa, Mozambique and Zimbabwe.
“We are delighted to support the Vital Capex programme, given HCB’s central role in the Southern African Power Pool. Additionally, HCB’s increased capacity, enhanced reliability and ability to provide ancillary services will facilitate greater integration of variable renewable energy sources such as solar PV and wind in the wider region,” said the Vice President of the AfDB’s Power, Energy, Climate Change and Green Growth Complex Kevin Kariuki.
Source: ESI Africa
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