Mozambique picked TotalEnergies SE (TTEF.PA) and Electricité de France SA (EDF) (EDF.PA) as strategic partners in a $4.5 billion hydropower project, Bloomberg reported on Friday citing a government statement.
The selected consortium includes EDF, TotalEnergies, and Sumitomo Corp (8053.T), Bloomberg reported.
Another consortium that bid for the project comprised ETC Holdings, Zesco Ltd. (Zambia), CECOT (a Mota-Engil subsidiary), and PetroSA (a unit of South Africa’s Central Energy Fund).
The 1,500 megawatt (MW) Mphanda Nkuwa dam and an associated transmission line is aimed at easing a power crisis in the region.
It would be close to the existing Cahora Bassa hydropower dam, which can generate 2,075 MW of power and sell more than half of its output to neighbouring South Africa.
The Mozambique government has said it expects financial close on the project in 2024 and completion by 2030, with the energy partners needing to invest $500 million to $700 million, Bloomberg reported.