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Thursday, 14 August 2008

Mozambique: Power sales to Malawi dependent on buyer

Maputo, Mozambique, 14 Aug - Plans to supply of power from Mozambique’s Cahora Bassa Hydroelectric dam (HCB) to Malawi can go ahead, but await the final go ahead from the neighboring state, Noticias newspaper reported.

Mozambique has signed an accord with the World Bank for financing of US$ 45 million, added the article, to build a power transmission line from HCB to the Malawi border, a project that could get underway at any moment. But Mozambican Energy Minster Salvador Namburete has said the venture has been stalled due to Malawi’s recent government crisis.

Malawian President Bingu wa Mutharika could dissolve parliament, which would have to ratify the HCB power supply project. The 220 KVA cross-border power linking the two states was planned a few years ago as part of a regional power grid, but its implementation from next year could now be stalled.

Supply of power to Malawi from 2009 will conclude a tender launched in 2003 by Electricity Supply of Malawi (ESCOM) to select the best regional supplier of electrical power. HCB was awarded the contract.

The first step in bilateral power cooperation took place in 1998 when the two states inked an accord as part of energy cooperation within the Southern African Development Community (SADC) aimed to exploit the potential of HCB.

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