Mozambique Secures $543 Million for Transmission Line to Temane

(Bloomberg) -- Mozambique secured $543 million in grants and loans for a high voltage transmission line connecting a new 420 megawatt gas-fired plant in Vilanculos to the capital, Maputo.

The World Bank will provide a $300 million grant for the Temane Regional Electricity Project, according to an emailed statement by Globeleq Advisors Ltd., one of the project’s partners. Sasol Ltd. and Mozambique’s state-owned gas company, ENH, will supply gas to the plant and electricity will be sold to the nation’s utility, Electricidade de Mocambique, under a 25-year agreement.

The Norwegian Trust Fund gave a $24 million grant, while the African Development Bank contributed $33 million, Globeleq said. The Islamic Development Bank provided a $99.7 million lease and loan and the OPEC Fund for International Development $36 million.

The Development Bank of Southern Africa will lend $50 million jointly with the European Union’s Infrastructure Investment Programme for South Africa.

To contact the reporter on this story: David Herbling in Nairobi at dherbling@bloomberg.net

To contact the editors responsible for this story: David Malingha at dmalingha@bloomberg.net, Helen Nyambura, Rene Vollgraaff

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