Mphanda Nkuwa hydroelectric project to generate $13.98B in Mozambique

• The Mphanda Nkuwa hydroelectric project is expected to generate 13.98 billion US dollars in revenues over its lifetime.
• Between 6,000 and 7,000 direct jobs will be created during the construction phase.
• The project will support 3,000 permanent jobs once operational, with 95% of these positions occupied by Mozambicans.

According to government estimates, the project will produce 13.98 billion US dollars in revenues over its lifetime.

The Mphanda Nkuwa hydroelectric project, located on the Zambezi river in Mozambique's Tete province, is poised to become a significant revenue generator for the country. According to government estimates, the project will produce 13.98 billion US dollars in revenues over its lifetime. This figure is derived from taxes, fees, and dividends that will be collected during the construction phase and subsequent commercial operations. The project's implementation timetable envisions completion of the development phase by 2028, with construction commencing in 2029 and commercial operations beginning in 2034.

During the construction phase, the Mphanda Nkuwa project is expected to create between 6,000 and 7,000 direct jobs. Once operational, the power station will generate 1,500 megawatts of electricity, supporting 3,000 permanent jobs, with 95% of these positions occupied by Mozambicans. The project's economic impact extends beyond job creation, as it is expected to contribute significantly to Mozambique's energy security and export potential.

The Mphanda Nkuwa project has made significant progress since its conception, with key milestones including the completion of a feasibility study for the Tete-Maputo power transmission line. This strategic infrastructure development will enable the supply of electricity to major consumption centers, enhancing national energy security and increasing export capacity. The project continues to attract strong interest from international financial institutions and strategic partners, paving the way for financial closure and construction commencement.

Lawyers advising on Mozambican infrastructure projects should note the project's expected revenue generation and job creation, which may impact investment decisions and compliance with local content requirements.

Source: Original reporting via AIM