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Japan funds Mozambican power plant

Japan is set to fund a gas-direct power station in Mozambique, EDM Chief Executive Fernando Augusto de Sousa announced last week.

“The construction of infrastructure will not only increase the availability and quality of electricity in the southern region of the country, but also aims to ensure a back-up to the city of Maputo,”  de Sousa said.

The new power plant will add 110MW to Mozambique’s 800MW peak demand when it comes online in 2018 – Mozambique expects 14% economic growth predicted for the country this year, and electricity demand will continue to rise alongside projected economic growth.

The announcement was made during Japanese Prime Minister Shinzo Abe’s visit to Mozambique, part of a three-country tour of Africa, the first by a Japanese leader since 2004.  Japan has also agreed to lend Mozambique $672 million over five years as that country seeks to secure access to Mozambique’s rich coal and gas reserves.