Brazilian construction company Andrade Gutierrez will resume construction of the Moamba-Major dam in Maputo province, interrupted due to a cut in Brazilian funding, announced the Mozambican government.
According to daily newspaper O País, which cites the Minister of Public Works, Housing and Water Resources, João Machatine, the Brazilian company is in negotiations with a Chinese company to jointly resume work on the dam that has been suspended since 2016.
The dam project is being reformulated to incorporate the water supply network, the main reason that led to an increase in the contracted cost and the project being brought to a halt due to lack of funds.
Initially, the works were estimated at US 460 million, but the redesign of the project pushed the cpst to US$700 million.
The Moamba-Major dam will produce 760 million cubic metres of water per year and will supply the entire province of Maputo including the capital.
The project will also produce 15 megawatts of electricity per year.
The works were interrupted due to a cut in the financing by the Brazilian National Economic and Social Development Bank (BNDES), following corruption scandals in Brazil in which also involved Andrade Gutierrez.
The financing was part of a US$4.7 billion financial package provided by the BNDES to African countries. (macauhub)