Portugal has agreed to sell its remaining 15% stake in the Cahora Bassa hydroelectric project on the Zambezi River to Mozambique, newswires have reported.

Armando Guebuza, Mozambican President, and Pedro Passos Coelho, Portuguese Prime Minister, signed a deal this week which would see Mozambique take full control of the project by 2014.

Mozambique took over a majority stake in the Cahora Bassa in November 2007. The scheme has previously been under the majority shareholder ownership of Portugal since its completion in 1975.

Late last year, Mozambique announced its intention to increase the capacity of the project from 2075MW to 3220MW by 2016 to help meet power demands in the country. The expansion is expected to cost $1B and will be funded by the operating company and private investors. Work is planned for early 2013, following completion of geological and hydrological studies.