$20 billion comeback and a $5billion dam could supercharge Mozambique’s economy.
After years of delay, the government of Mozambique appears poised to restart the $20 billion liquefied natural gas (LNG) project led by TotalEnergies, while also securing World Bank financing for the largest hydropower project in Southern Africa in 50 years.
Last week, Mozambique’s energy minister stated that the prerequisites had been met to restart the TotalEnergies LNG project in the volatile Cabo Delgado area.
The development, which began in 2010 following the discovery of a massive offshore natural gas deposit, received final investment approval in 2019. However, development was halted in 2021 due to a wave of violent attacks by Islamist extremists near the project’s site, prompting the French energy giant to suspend the initiative over safety concerns.
In an interview with the World Bank President Ajay Banga, it was revealed that the global lender plans to offer assistance for the $5 billion Mphanda Nkuwa hydroelectric project on the Zambezi River, and a related $1.4 billion power transmission project.
The dam, which has a planned capacity of 1,500 megawatts, is scheduled to be operational by 2031. It will be supported by a $1.4 billion power transmission project.
The objective is to deliver electricity connections to 300 million people in sub-Saharan Africa by 2030, considerably boosting access in an area where more than 80% of the world’s 680 million people without the energy source dwell.
Source: Africabusinessinsider