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The European Union (EU) and the European Investment Bank (EIB) will contribute €500 million to the financing of the Mphanda Nkuwa mega hydroelectric project in Mozambique. This contract to build the infrastructure on the Zambezi River is being given to a consortium of at least two European companies, including France’s TotalEnergies and Électricité de France (EDF), the European Union (EU) and the European Investment Bank (EIB) have announced their participation in the financing of this project.
The European Union (EU) and the European Investment Bank (EIB) will contribute €500 million to the financing of the Mphanda Nkuwa mega hydroelectric project in Mozambique. This contract to build the infrastructure on the Zambezi River is being given to a consortium of at least two European companies, including France’s TotalEnergies and Électricité de France (EDF), the European Union (EU) and the European Investment Bank (EIB) have announced their participation in the financing of this project
This was decided at a meeting in the capital Maputo on the issues relating to the structuring and financing of the project. The two new partners will contribute up to €300 million to the development of the electricity transmission infrastructure. The 1,500 MW hydroelectric power station will be financed to the tune of €200 million.
The entities were informed of the project’s progress, the update on the technical and environmental studies, the financing, the process for selecting the strategic partner, the energy market, and the implementation schedule. This update was necessary in view of the estimated environmental and social impact of this hydroelectric project.
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The most direct consequence is the destruction of the irrigation systems located downstream of the dam. This upheaval will affect aquaculture in the Zambezi River Delta. Worse still, the dam is expected to displace 1,400 families and affect the livelihoods of 200,000 people. The United Nations (UN) has expressed its disagreement with the project, describing it as the least environmentally acceptable large dam project in Africa. In addition to TotalEnergie and EDF, the consortium in charge of financing and building the hydroelectric scheme includes Japanese companies Sumitomo Corporation and Kansai Electric Power.
