Mozambique - Mozambique Energy for ALL (MEFA)


Project Summary

Approval Date 29 Sep 2021
Planned Completion Date 01 Jul 2026
Last Disbursement Planned Date 01 Jul 2026
Sovereign / Non-Sovereign Sovereign
Sector Power
DAC Sector Code 23630
Commitment U.A 25,900,000
Status Approved

Project General Description

The proposed operation is a key element of the Bank’s strategy to help Mozambique turn its energy sources into development outcomes, complementing interventions in developing the natural gas resources and expanding transmission capacity of the country. The MEFA Programme has three components that respond to key development challenges in Mozambique. The first component entails the construction and taking into operation a new National Control Centre which will be pivotal in expanding power exports. The national electricity utility, Electricidade de Moçambique (EDM) is aiming for a threefold increase), incorporating more variable renewable energy sources, such as solar and wind, and facilitating inward investments due to availability of much better quality of power supply. The second component will provide nearly 49,000 new connections in support of the Government of Mozambique’s (GoM), Energy for all Plan. The third component targets operational support to the above components, supporting Mozambique’s membership of the Africa Trade Insurance Agency and improving the financial health of EDM. The programme costs inclusive of taxes and duties is UA 56.8 million. The Bank proposes to extend an ADF grant of approximately UA 25.9 million, which will cover 48% of the project cost.

Project Objectives

The Programme Objectives are: (i) to increase stability of the Mozambican power system, (ii) enable a large expansion of power sales to Southern Africa Power Pool (SAPP), (iii) expand access to electricity and (iv) assist in improving EDM’s financial sustainability. The programme will be co-financed with the Governments of Germany and Sweden.

Beneficiaries

The implementation of the MEFA Programme will have impacts across the whole of Mozambique. Component 1 NCC entails interventions and impacts across the country and future benefits will even expand into neighbouring countries. Component 2 will increase the number of connections in the provinces of Zambezia and Nampula, (the two most populous and with the highest poverty incidence in Mozambique), entails interventions on the outskirts of the cities of Nampula, Nacala, Quelimane and Mocuba. In particular in the province of Nampula, refugees and IDPs, and hosting communities will also directly benefit from the access component. The selection of these four cities was undertaken by EDM reflecting the need to support activities in central-north and keeping the implementation of the Component efficient and effective. The third Component involves non-tangible benefits with positive impacts across Mozambique due to facilitation of new generation capacity dispersed in several locations and TA.

Participating Organization

Funding
African Development Fund
Implementing
ELECTRICIDADE DE MOZAMBIQUE (EdM)

Information

IATI identifier 46002-P-MZ-FA0-021
Last Update 04 Dec 2021

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Contact Details

Name BATSANA Mario Eduardo Nunes Antonio
Email m.batsana@afdb.org

Geographic Location

Country Mozambique