Multinational commodity company Trafigura, in partnership with international engineering firm ProMarks, signed a Memorandum of Understanding (MoU) with Angola’s government for the development of a cross-border power transmission project.
The project involves building a 2,000 MW high-voltage power interconnector, which will transmit electricity from hydroelectric projects in Angola to mines across the copper belts of Zambia and the Democratic Republic of the Congo. The construction process is expected to take four years, pending a final investment decision. The companies involved are expected to begin conducting feasibility studies soon.
“We see that the demand for power is significantly increasing across the copper belt region where mining activities are growing and are being supported by the logistics provided by the Lobito Atlantic Railway,” stated Julien Rolland, Head of Strategic Project and Investment, Trafigura.
The project will be integrated within the broader Southern African Power Pool – a regionally integrated energy market – and will be developed, financed, constructed and operated by a joint venture company between Trafigura and ProMarks. Financing will be derived from a combination of equity capital and third-party debt, with the project operating under a Public-Private Partnership model.
“The interconnector project between the electricity grids of Angola and neighboring countries could, along with the Caculo Cabaça Hydro dam, be the most important project for the electricity sector, attracting substantial new revenues for Angola and facilitating a return on the investment that has been made by the government in energy production,” stated Elísio Augusto, Executive Director, ProMarks.
