Mozambique hydro plant almost there

Mozambique Hydro Plant

The Mozambique government have earmarked 2015 as the finishing date for the huge, US$2 billion Mphanda Nkuwa Dam on the Zambezi River.

"On the first stage we contemplate 1,500 MW of energy to be generated, with investments of about $2 billion," said, Vitor Hallack, the chairman of the company at the head of the project.

Speaking to Reuters at a conference organized by South Africa's Standard Bank, Hallack added that the other dam projects, such as the large Cahora Bassa Hydro-Electric dam, are expected to supply the region with 6,000 MW of electricity by 2014.

But, despite his optimism over the project being on schedule, Hallack did point out that the actual completion date was reliant on his company signing a deal with South Africa power utility Eskom.

25 year energy deal

"The main milestone is to establish a power purchase agreement with Eskom and have a commitment to buy this energy through 25 years on a long-term basis," he said.

Although did not set a deadline for this agreement to be signed, it is rumoured that Eskom have been placing other projects on hold in an effort to shore up more capital.

Not everyone is in support of the project, with many people concerned over the dam's environmental impact.

Nairobi-based renewable energy expert Mark Hankins said, "As long as Mozambique's power planners focus on the huge consumer next door, they will never adequately meet the needs of their own country, which remains largely off-grid and unconnected. It doesn't have to be this way."

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