The Government of Mozambique has signed agreements with various foreign institutions to finance the development of the $506.7 million Temane-Maputo electricity transmission project.

The project involves the construction of a 400 kV high voltage transmission line, stretching from Vilanculos to Maputo, along with three new substations at Vilanculos, Chibuto and Matalane and upgrades to the Maputo substation.

The transmission line will then connect to the new 420 MW gas-fired power plant to be constructed at Temane.

The total funding facility of nearly $543 million for the transmission line and related substations includes a $300 million grant from the World Bank, a $24 million grant from the Norwegian Trust Fund, a $33 million grant provided by the African Development Bank, a $99.7 million lease and loan through the Islamic Development Bank, and a contribution from OFID of $36 million.

Source: ESI-Africa