Mozambique Energy: Government negotiates relaunch of the Moamba-Major dam works

The Mozambican government is negotiating with three international companies to conclude works on the Moamba-Major dam in Maputo province, the National Director of Water Resources Management (DNGRH), Messias Macie told Mozambican newspaper Notícias.

The construction of this dam on the Incómati River was suspended following the corruption case in Brazil known as “Lava Jacto,” which involved several construction companies, such as Andrade Gutierrez, which was as a contractor on this project.

The Brazilian National Bank for Economic and Social Development announced in October 2016 the suspension of the financing of 25 projects executed by Brazilian companies in foreign countries, which included Angola and Mozambique.

Later the Brazilian ambassador to Mozambique, Rodrigo Soares, said his country would honor its promise to finance the construction of the Moamba-Major dam, despite the fact that Brazilian projects in Mozambique and other countries were being re-evaluated.

Macie told Notícias that the government plans to complete the evaluation of the proposals quickly and take the necessary steps so that the works, “which are at a standstill due to lack of participation of the Mozambican government in the cost of the project, amounting to US$200 million,” can be resumed.

The Moamba-Major dam, whose foundation stone was laid in 2014, will have capacity to store 760 million cubic meters of water, control the flow of the Incomati river, increase water supply to the cities of Maputo, Matola and Ressano Garcia and have a power plant to produce 15 megawatts of electricity.

Construction of the dam had an estimated cost of US$466 million, and Brazil had promised to provide US$320 million. (source: Macauhub)