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Electricidade De Moçambique (EDM) Emergency Network Rehabilitation Project

In collaboration with EDM’s appointed independent advisors, the DBSA has prioritised and prepared two projects for implementation in the first phase of the network rehabilitation project.

Introduction

EDM identified twelve projects that will strengthen Mozambique’s electricity network, which will increase network security and enable the connection of new customers. In collaboration with EDM’s appointed independent advisors, the DBSA has prioritised and prepared two projects for implementation in the first phase of the network rehabilitation project: Pemba STATCOM project, and Maputo City rehabilitation project.  

The Pemba STATCOM project entails the installation of a Static Synchronous Compensator (STATCOM) to stabilise and maintain smooth voltage transmission on EDM’s network supplying Pemba, the capital City of Cabo Delgado province. Demand on this network is rapidly increasing due to growing economic activity in the province. EDM has identified installation of STATCOM as the best option to increase network capacity. Maputo City rehabilitation project involves the replacement of indoor switchgear at a number of identified switching stations within Maputo, the capital city of Mozambique. 

Project Financing
Private
E&S Risk category
Category 2
DBSA Involvement

The DBSA approved a loan structured as a 15-year amortising facility, with a three-year capital moratorium in line with project construction. The facility consists of two tranches: a covered tranche of 85% of the facility amount and an uncovered tranche of 15% of the facility amount. 

Stats
150 000

household connections.

850 000

reduction household backlogs.

212km

power lines.

125km

electricity network

R81.30m
100%
Sustainability impact

The loan cover was secured from South Africa’s state-owned Export Credit Insurance Corporation (ECIC), which enabled the DBSA to provide more competitive terms to EDM. The ECIC cover was provided on the precondition of South African content in the project, as detailed in the engineering, procurement and construction contract. A further portion of Mozambican content was secured to comply with the ECIC's requirements. Benefits will, therefore, be realised by both South Africa and Mozambique.