Image: Club of Mozambique
Mozambique commenced construction of its 450-MW Temane Thermal Power Plant and transmission line project on Monday in the southern province of Inhambane.
Valued at $1 billion, the gas-to-power plant is set to drive domestic and regional electrification by supplying low-cost and efficient power to the national grid, while exporting surplus electricity to neighboring countries. Upon completion, the power generated will be purchased by state-owned electric utility Electricidade de Moçambique (EDM) under a long-term power purchase agreement.
“Today, we mark a milestone in the framework of this endeavor to illuminate Mozambique. Our governance aspires that more than 10 million Mozambicans will have access to electricity for the first time in their homes by 2024,” said Mozambican President H.E. Filipe Nyusi, during the launch of the project.
Among other entities, the capital-intensive project is being financed by the World Bank, African Development Bank, Islamic Bank, OPEC Fund for International Development and a $200-million direct loan for its construction from the U.S. International Development Finance Corporation (DFC).
“In addition, thanks to the support of the U.S. government’s signature Power Africa program, we are providing a ‘transaction advisor’ assigned to EDM to help bring the critical Temane Transmission Line Project to financial close,” said Dennis Hearne, U.S. Ambassador to Mozambique.
The project is also expected to spur job creation through the direct employment of more than 3,000 Mozambicans and the generation of thousands of indirect jobs over the next three years.