IFC signs deal to support 1.5 GW hydropower project in Mozambique

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The International Finance Corporation (IFC) and the Ministry of Mineral Resource and Energy (MIREME) of Mozambique have entered into a collaboration to develop a 1,500 MW hydroelectric power project and its associated transmission facilities on Zambezi River, Mozambique. 

The Hydropower Project will have the capacity to supply power to meet the growing domestic demand in Mozambique and transform the country into a regional energy hub. The rest of the project's output is expected to be exported to neighboring countries, including South Africa. IFC will work with the government to structure the project, with the goal to help mobilize competitive private investment, reaching commercial operation for the port. IFC will be responsible for the review of technical design, environmental safeguards, as well as commercial and financial structuring.

The estimated US$4.5 billion project will include a dam, a power station, and a high voltage transmission infrastructure of 1,300 km from the project site in Tete Province to Maputo, Mozambique's capital. The project is scheduled for completion in 2031.

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