U.S. International Development Finance Corporation Seeks to Help Mozambique on Energy Infrastructure
Posted on 09/12/2020
The U.S. International Development Finance Corporation (DFC) approved investments that total more than US$ 2.5 billion across 9 projects in emerging markets for the latest quarter. U.S. International Development Finance Corporation (DFC) is America’s development bank.
The DFC is keen on stimulating energy development in Mozambique. DFC provided up to US$ 1.5 billion in political risk insurance will support the commercialization of natural gas reserves in Mozambique’s Rovuma Basin. DFC expects when the development is completed it could increase Mozambique’s GDP by an average of US$ 15 billion per year. DFC’s political risk insurance will support the development, construction, and operation of an onshore liquefaction plant, along with supporting facilities.
DFC is also lending up to US$ 200 million in a loan to the Central Térmica de Temane S.A. The loan will finance the development, construction, and operation of a 420-megawatt power plant and 25-kilometer interconnection line in Mozambique. Power will leave the plant through a 560-kilometer transmission line that was supported with technical assistance from the U.S. Government-led Power Africa initiative. Moz Power Invest, S.A. (MPI) is a company to be incorporated under the laws of Mozambique and Sasol New Energy Holdings (Pty) Ltd (SNE) in a joint development agreement is proposing the construction and operation of a gas to power facility known as the Central Térmica de Temane project. MPI’s shareholding will be comprised of EDM and Temane Energy Consortium (Pty) Ltd (TEC).