https://www.engineeringnews.co.za
Africa|Energy|Infrastructure|Power|PROJECT|Projects|Services|Solutions|Infrastructure
Africa|Energy|Infrastructure|Power|PROJECT|Projects|Services|Solutions|Infrastructure
africa|energy|infrastructure|power|project|projects|services|solutions|infrastructure

DBSA concludes $81.3m loan facility for Mozambique power utility

9th December 2019

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

Mozambique’s national utility Electricidade de Mocambique (EDM) has received a senior loan debt facility of $81.3-million from the Development Bank of Southern Africa (DBSA) for the rehabilitation and upgrade of the country’s energy supply network.

This financing support is in line with Mozambique’s plans to upgrade the country’s power network to provide universal electricity by 2030.

EDM has also launched several other projects aimed at strengthening the transmission grid and improving distribution capacity in the country.

Phase 1, which comprise two of the 12 projects, is ready for implementation at an estimated cost of $81.3-million. These two projects are located in Pemba and Maputo.

The DBSA loan facility will be advanced directly to EDM as a 15-year senior debt facility, where Mozambique’s development bank Banco Nacional de Investimento (BNI) will serve as the due diligence and project evaluation partner in addition to providing capital raising and advisory services.

BNI and DBSA are strategic partners as part of a long-standing memorandum of understanding with the objective to forge localised support and to enhance regional development finance institution partnerships and cooperation.

“We have been working with EDM and BNI for the past four years with funding solutions to rehabilitate its electricity network in the cities of Maputo and Pemba,” said DBSA group executive Zodwa Mbele.

DBSA is the only lender in the transaction.

Mbele added, however, that “what is noteworthy” was that DBSA made a strategic decision to assist Mozambique and its utility when no other lender was prepared to assist the country during a time of need while also heeding a call from the Mozambican government to get involved in infrastructure projects.

EDM’s COO commented that BNI was instrumental in negotiating guarantees on behalf of the government of Mozambique.

“We believe the energy sector offers significant opportunities to provide both social and economic development in Mozambique with an anticipated 284 000 households receiving connectivity and stable power connection,” DBSA Southern African Development Community coverage division head Davies Pwele commented.

The DBSA’s role as a key development partner in Mozambique goes back a long time with support and investment unceasing in supporting the country’s critical energy infrastructure projects, he concluded.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Latest News

Magazine video image
Magazine round up | 29 March 2024
29th March 2024

Showroom

Environmental Assurance (Pty) Ltd.
Environmental Assurance (Pty) Ltd.

ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...

VISIT SHOWROOM 
VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.056 0.106s - 163pq - 2rq
Subscribe Now