The Mozambican government has given a greenlight to private hydro power companies to construct two hydro-electric plants along the Zambezi River that will produce 1,000 megawatts of electricity at a time.

“Concession-holding companies Hidroeléctrica de Chemba and Sociedade Energética de Tambara will produce 600 MW and 400 MW, respectively.

“The concessions will have a construction period of five years and 25 years of operation, after which the projects will revert to the state, which, through state power company EdM, has a 12.5 percent stake,” said a Mozambique government official.

The official added that the two projects on the Zambezi River will have a positive impact on the economy and the region, attracting new investments and improving the local population’s living conditions.

Mozambique has been hit by constant power cuts in recent months but the southern African country’s energy sector is attracting significant investment, beyond its much discussed large offshore gas discoveries. Mozambique has become one of the most promising countries in Africa in terms of natural gas and coal resources.

The country’s Tete Province is estimated to hold large untapped coal reserves of 25 billion short tons, according to the International Energy Agency.

By George Mpofu