Filipe Jacinto Nyusi, President of Mozambique, has laid the foundation stone of the Temane gas and power projects in Inhassoro, Inhambane province.
The act symbolises the start of construction of the Temane Thermal Power Plant (CTT), the Temane-Maputo Electric Power Line (TTP) and a cooking gas (LPG) factory; “projects undertaken by the Government of Mozambique and partners”, Radio Mozambique reported.
Financing close for the project was announced in late December 2021. Partners include the British energy developer Globeleq; the Mozambican state utility Electricidade de Moçambique, E.P. (EDM) and the South African integrated energy company Sasol.
Debt financing of the $652.3Million project is being provided by IFC, together with its “B” loan participants FMO and Emerging Africa Infrastructure Fund ($253.5Million), US International Development Finance Corporation (DFC) (approximately $191.5Million) and the OPEC Fund for International Development (OPEC Fund) ($50Million). The Multilateral Investment Guarantee Agency (MIGA) has provided up to $251.3Million in political risk insurance to the private sector equity investors. have announced financial close of the Central Termica de Temane power project (CTT)
Electricity from CTT will be supplied to EDM under a 25-year tolling agreement.
President Nyusi was accompanied on his working visit to the site by Carlos Joaquim Zacarias, the new Minister of Mineral Resources and Energy, along with staff from the Presidency of the Republic and other state institutions.
The CTT is expected to provide electricity to meet the demand of 1.5Million households and will contribute about 14% of the electricity supply capacity available to meet demand in Mozambique..