Mozambique´s Government announced the consortium led by Électricité de France (EDF), which includes Total Energies, Sumitomo Corporation and Kansai, as the Preferred Bidder in the tender for selecting the Strategic Partner for Mphanda Nkuwa Project development.
With an estimated cost of USD 4.5 billion, the Mphanda Nkuwa Hydropower project includes the development of a run-of-river dam located 61 km downstream of Cahora Bassa, on the Zambezi River, in Tete province. It is a hydropower plant with an installed power generation capacity of up to 1,500 Megawatts and a high-voltage power transmission line from Tete to Maputo of approximately 1300 kilometres.
“The project is being implemented in strict compliance with internationally accepted global standards and tools of social, environmental sustainability and governance (ESG) for mitigation of negative impacts and maximization of positive aspects, evaluation and certification of the project, which privilege the creation of opportunities for local communities, minimize and mitigate the adverse impact on biodiversity heritage”, the Ministry of Mineral Resources and Energy (MIREME) said.
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The announcement results from the evaluation made of the valid technical, economic and financial proposals, by the Committee chaired by MIREME, consisting of the Mozambique Power Utility Company (EDM) and the Cahora Bassa Hydropower Plant (HCB), Ministry of Economy and Finance, Ministry of Land and Environment, Ministry
of Labour and Social Security and the Bank of Mozambique, the Government said.
The qualification process for the selecting the strategic partner that will join EDM and HCB started in June 2022 and the deadline for the submission of proposals on 10th March 2023.
For the present phase, in addition to the preferred bidder, the consortium led by ETC Holdings, which includes ZESCO Limited, CECOT (a subsidiary of Mota-Engil) and PetroSA (a subsidiary of the Central Energy Fund, South Africa), has been appointed the reserve bidder.
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The proposals should contain, amongst others, information on technical capacity, financial robustness and international experience, development of hydropower projects, development plan and financing, taking into account the investment required and a guarantee of USD 10 million from each bidder.
After notification of the preferred bidder, the negotiation of the agreement of the project implementation begins, observing the assumptions in the tender specifications, a condition to become a Strategic Partner of the Project.
“The project will be the lowest cost option for power generation. It will position Mozambique as a regional power hub; contribute to universal access and industrialization, job creation, technical training and energy exports. The Mphanda Nkuwa project will be fundamental to the process of energy transition and decarbonisation of the Southern region of the African continent”, the Government said.
