Reuters cited Mozambique Fisheries Minister Victor Borges as saying that Brazilian engineering group ATP Engenharia Ltd has been awarded a $1.2bn contract for the construction of a 600MW hydropower plant.

The company also received another $600m to build a 215MW hydropower project while the prower from the projects will be sold domestically and to Mozambique the rest of southern Africa, Borges added.

Already Mozambique exports power to its neighboring countries including Zimbabwe and South Africa.

Significant natural gas reserves discovery as well as rapid economic growth of 8% a year allowed the nation as an attractive destination for investment in the power sector.

Separately, Mozambique is planning to develop a 3,000km pipeline to carry gas from the northern province of Cabo Delgado to the capital, Maputo, and other southern parts of the country.