Mozambique - Mozambique Energy for ALL (MEFA)

The proposed operation is a key element of the Bank’s strategy to help Mozambique turn its energy sources into development outcomes, complementing interventions in developing the natural gas resources and expanding transmission capacity of the country. The MEFA Programme has three components that respond to key development challenges in Mozambique. The first component entails the construction and taking into operation a new National Control Centre which will be pivotal in expanding power exports. The national electricity utility, Electricidade de Moçambique (EDM) is aiming for a threefold increase), incorporating more variable renewable energy sources, such as solar and wind, and facilitating inward investments due to availability of much better quality of power supply. The second component will provide nearly 49,000 new connections in support of the Government of Mozambique’s (GoM), Energy for all Plan. The third component targets operational support to the above components, supporting Mozambique’s membership of the Africa Trade Insurance Agency and improving the financial health of EDM. The programme costs inclusive of taxes and duties is UA 56.8 million. The Bank proposes to extend an ADF grant of approximately UA 25.9 million, which will cover 48% of the project cost. This project primely contributes towards climate adaptation result. As such 100% of the total approval is attributed as climate finance, out of which 100% is adaptation finance.