Rehabilitation of Mavuzi-Chicamba HPP

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KfW is providing a promotional loan of EUR 18 million for the rehabilitation of the two hydroelectric power plants Mavuzi (52 MW) and Chicamba (38 MW) in Mozambique. The project is the most important investment project of the state-owned energy supplier EDM. Since 2005, EDM has increased the electrification rate in the country from 7% to 17%, so that 3.5 million people now have access to electricity. The accelerated electrification and the sustained economic growth of almost 8% are causing the demand for electricity to rise continuously. Since the electricity generation from the large hydroelectric power plant Cahora Bassa (2,000 MW) is tied to long-term export contracts, the country is becoming increasingly dependent on expensive imports and emergency generators. The rehabilitation counteracts this trend. The financing is being carried out jointly with the Swedish development cooperation SIDA (EUR 35 million grant) and the French development bank AfD (EUR 50 million loan). The KfW promotional loan is supplemented by a grant from the BMZ for training and further education measures to optimize financial, investment and expansion planning. In order to ensure that investments have a broad, sustainable development impact, it is crucial to support the change process of commercializing EDM. This package of measures has succeeded in introducing the long-standing customer relationship to new financing products.