Mozambique has announced plans to build combined cycle natural gas power station, estimated to cost US180million, government officials have said. The plant will have a producing capacity of 106 megawatts of electricity.
Funding for the project is through a soft loan of US$167 million from the Japan International Cooperation Agency (JICA) at an interest rate of 0.01% per year, with a payment period of 40 years including a grace period of 10 years.
The new power station will be the first thermoelectric combined cycle power plant in Mozambique, ensuring a more efficient use of the energy resource available in the country.
The power plant project, along with a project to recover the Mavuzi and Chicamba hydroelectric plants, in the central province of Manica, will help to diversify energy sources and increase EDM’s production capacity from 206 megawatts to around 315 megawatts from mid-2018.
Malawi’s current electricity production is 351 megawatts, which only supplies about 10% of the population.