Mozambique-based hydropower generation company Hidroeléctrica de Cahora Bassa (HCB) is set to leverage a loan of up to €125 million from the African Development Bank (AfDB) to modernize its hydropower production system following approval of the loan by AfDB’s Board of Directors.
The loan, which includes a €100 million package from the AfDB and up to €25 million from the Africa Growing Together Fund, will fund HCB’s Vital Capex program which aims to increase the lifespan of the utility’s production system by more than 25 years.
The system upgrade will help improve the reliability of grid networks and reduce outages in Mozambique, South Africa and Zimbabwe by ensuring the sustainable delivery of electricity across the regional energy network.
“We are delighted to support the Vital Capex program, given HCB’s central role in the Southern African Power Pool. Additionally, HCB’s increased capacity, enhanced reliability, and ability to provide ancillary services will facilitate greater integration of variable renewable energy sources such as solar PV and wind in the wider region,” said Kevin Kariuki, Vice-President of the AFDB’s Power, Energy, Climate Change and Green Growth Complex.