China Eximbank pledges to finance the Moamba Major Dam Project

On April 21, 2006, China Eximbank and the Government of Mozambique signed a memorandum of understanding (MOU) for two energy projects: the Mpanda Nkuwa Hydroelectic Power Plant (see Project #57656) and the Moamba Major Dam. It was reported in 2007 that China Eximbank had agreed to finance feasibility studies for the Moamba Major Dam Project. If the studies were successful, China Eximbank would provide $300 million USD for construction. In January 2009, final negotiations between China Eximbank and Mozambique Electricity (EDM) were reportedly underway. It seems as if China Eximbank never signed a final financing agreement because Brazilian National Economic and Social Development Bank (BNDES) and a Brazilian contractor did instead. The 760 million cubic meter dam was supposed to be located on Incomati River in Moamba district of Maputo province. The purpose of this $700 million USD project was to supply water and 15MW of electricity to Matola, Ressano Garcia, and Maputo, the capital of Mozambique. Construction began in 2014. Then, in 2016, BNDES pulled financing because the Government of Mozambique was not able to meet counterpart funding commitments. The Brazilian contractor stopped works and never resumed. In June 2020, the Mozambique Minister of Public Works, Housing, and Water Resources told reporters that negotiations between the Mozambique Minister of Economy and Finance and China Eximbank were going well. It is still unclear whether works ever resumed or if China Eximbank ever signed a final financing agreement.

Number of official sources

2

Number of total sources

10