The African Development Bank (AfDB) has approved a loan package for Hidroeléctrica de Cahora Bassa (HCB) in Mozambique to support its vital capex programme aimed at modernising the company’s electricity production system
The modernisation will extend the life of the Cahora Bassa hydroelectric plant by at least 25 years, enhance the reliability of energy delivery, reduce outages and enable the company to fulfil its contractual obligations to its off-takers and enhance regional integration of the electricity sector in SADC. The package comprises up to EU€100mn (approx. US$105mn) from AfDB and up to EU€25mn (approx. US$27mn) from the Africa Growing Together Fund.
The vice president of AfDB’s Power, Energy, Climate Change and Green Growth Complex, Kevin Kariuki, commented, “We are delighted to support the vital capex programme, given HCB’s central role in the Southern African Power Pool. Additionally, HCB’s increased capacity, enhanced reliability, and ability to provide ancillary services will facilitate greater integration of variable renewable energy sources such as solar PV and wind in the wider region.”