In addition to the World Bank funding, the project is also supported through a £19m co-financing grant from a Norwegian Trust Fund
Image: The project compliments SAPP’s efforts to increase the generation capacity and expand the regional transmission network. Photo: Courtesy of Pexels from Pixabay.
The World Bank Group has approved a total amount of £330m of International Development Association (IDA) grants and guarantees for Mozambique.
The grants are intended to strengthen Mozambique’s transmission capacity for domestic and regional markets and increase electricity generation capacity in the country through private sector investment.
In addition to the World Bank funding, the project is also supported through a £19m co-financing grant from a Norwegian Trust Fund.
Projects that strengthen generation and transmission of power in Mozambique
The Temane Regional Electricity Project (TREP) is planned to be developed as an integrated operation including both public and private investments, and is expected support the construction of a 563km high-voltage transmission line between Maputo and Vilanculos/Temane, and a private sector financing of a 400MW combined cycle gas-to-power generation plant at Temane.
The two projects are expected to strengthen generation and transmission of power in Mozambique and southern Africa.
The project senior energy specialist and task team leader Zayra Romo said: “In addition to enhancing the transmission and generation capacities, the TREP will finance technical studies in support of regional power integration and renewable technologies in power system planning and operation.
“It will also support studies on power sector investment plans, including Mozambique’s role in regional trading.”
According to the bank, TREP is designed to integrate its disjointed northern, central and southern power systems and strengthen regional connectivity to the Southern African Power Pool (SAPP).
In addition, the project compliments SAPP’s efforts to increase the generation capacity and expand the regional transmission network, create conditions to provide access to millions of people in the region living without electricity, and reduce the carbon intensity of the Southern Africa power systems.
The World Bank Africa, the Middle East and Northern Africa regional integration director Deborah Wetzel said: “The Temane project is key to increasing opportunities for power trade among SAPP countries. Despite the abundance of energy resources in the subregion, lack of cross-border interconnections remains a major constraint.
“The full integration of SAPP countries’ power systems and more power trade could bring savings of $42 billion in investment and operating costs till 2040. The Bank is committed to helping southern Africa realize these potential savings.”