The US Trade and Development Agency (USTDA) has granted US$600,000 to help develop two hydroelectric projects on the Lurio river, in the northern region of Mozambique.

The funds will be used by the Mozambican Electricity Company (EDM) to complete a feasibility study on technical, financial, environmental and other critical aspects of the hydro scheme.

The project is needed to help the country face the predicted growth in energy demand in the region by 2007.