11 November 2007 – Portugal will receive US$700 million for the purchase of a majority shareholding in the Cahora Bassa dam by the Mozambican government, the ‘Savana’ weekly reports.

The payment, which is due to be made on 26 November, will increase the Mozambican shareholding in Hidroelectrica de Cahora Bassa (HCB) will increase from 18 to 85%, while the Portuguese holding will go from 82 – 15%.

Financing for 67% of HCB comes as a loan from a CA Lyon and Portuguese Investment Bank (BPI) consortium. Repayment will be financed through sales of electricity.

Currently, South Africa, Zimbabwe and Mozambique’s EDM purchase electricity from HCB. The new arrangements means additional pressure on Zimbabwe’s Zesa, to meet payment dates and obligations. Zesa currently owes HCB US$20 million.

Repayment options are over seven, 12 or 15 years, with a LIBOR (London Inter-Bank Offered Rate) of 4.6375% plus an additional two percent.

Canada’s Manitoba Hydro have been hired by HCB to undertake bi-annual technical verifications and reassess the company’s continued viability.