The concession contract for the Hidroeléctrica de Cahora Bassa (HCB) hydroelectric facility was extended for another 15 years under a government-approved decree on Tuesday, the spokeswoman for the Mozambican Council of Ministers announced.
Ana Comoana also said that the extension of the term of the concession was intended to make the public offering of HCB’s shares feasible, in addition to allowing the project to renew hydroelectric power over the next 10 years to continue, and which is estimated to cost around US$500 million.
Mozambican President Filipe Nyusi announced in November 2017 that the State would sell off, through the Mozambican Stock Exchange, 7.5% of HCB shares in an offer reserved for Mozambican citizens and companies.
The Cahora Bassa hydroelectric plant, managed by HCB, is owned 92.5% owned by the Mozambican state following agreement signed with Portugal in 2007, and the remaining 7.5% is held by Portuguese power distribution group Redes Energéticas Nacionais (REN). (macauhub)