MOZAMBIQUE - Hidroelectricia Cahora Bassa’s (HCB) Corporate Loan Facility


Project Summary

Approval Date 23 Nov 2022
Sovereign / Non-Sovereign Non Sovereign
Sector Power
DAC Sector Code 23220
Commitment U.A 78,914,764.16
Status Approved

Project General Description

The proposed transaction entails a Corporate Loan Facility (the “Facility”) to support Hidroeléctrica Cahora Bassa’s (“HCB”) 10-year investment plan named “Vital Capex”, with an estimated cost of EUR 650 million to rehabilitate and modernize HCB’s electricity production system located in Mozambique (the “Project”). HCB is the concessionaire of the Cahora Bassa Hydroelectric Scheme (“CBHS”), with a total installed capacity of 2,075MW, on the main stem of the Zambezi River and is the largest power producer in Mozambique, accounting for more than 80% of Mozambique’s power output. The project rationale is to enable the rehabilitation of CBHS with the following expected outcomes: i) extend the life of the dam by an additional 25 years; ii) increase the delivery of clean energy by an additional 110MW; iii) enhance the reliability of delivery of energy ; iii) reduce unplanned outages of CBHS enabling HCB to fulfil its contractual obligations to its off-takers and iv) enhance regional integration of the electricity sector in SADC countries; v) increase revenue for both HCB and Mozambique and vi) ensure the sustainability of energy security of South Africa , Mozambique and Zimbabwe.

Project Objectives

The project goal is to support HCB’s10-year investment plan named “Vital Capex”.

Beneficiaries

The main beneficiary of the project is Hidroeléctrica Cahora Bassa’s (“HCB”) named “Vital Capex”.

Participating Organization

Funding
African Development Bank

Information

IATI identifier 46002-P-MZ-F00-017
Last Update 01 Feb 2023

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Contact Details

Email private-sector@afdb.org

Geographic Location

Country Mozambique
Coordinates Location Name
-16.7625 33.13889 Tete