The Government of Mozambique (GoM) has been pursuing a strategy to promote the development of a generation and transmission capacity not only to satisfay the internal, growing, domestic and industrial demand for electricity but also to export power to the regional market.

Mphanda Nkuwa project is included in Mozambique’s National Energy Sector Master Plan for the period 2018-2043 as a national priority, as well as priority investment for the Sourhern Africa Power Pool.

The project is also included in the five-year Government Plan (2020-2024), which guides the government’s intervention across all sectors for five years, including energy generation and scale-up, dam construction and more.

In 2018, his Excellency President of the GoM Filipe Nyusi declared the Project a Presidential Flagship project and mandated Electricidade de Moçambique (EDM) and Hidroeléctrica de Cahora Bassa (HCB) to structure and lead the development of the Project along with Ministry of Mineral Resources and Energy (MIREME).

In 2019, the GoM created a new entity called Gabinete de Implementação do Projecto Hidroeléctrico de Mphanda Nkuwa (“GMNK”) to coordinate the Project’s development.

In 2020, a transaction advisory team (“Advisors”) were selected to support MIREME and GMNK with the structuring of the Project and the tender process for the selection of the Strategic Partner.

In 2021, GMNK concluded a Development Strategy Concept note and a market sounding session was carried out on the 29th September 2021, to seek feedback from participants and to better understand their investment appetite, structuring and requirements in the Mphanda Nkuwa Hydropower Project.

In 2021, MIREME and GMNK, together with EDM and HCB has officially launched the tender process on 13th December 2021 at an event in Maputo, Mozambique with the launch of RFQ.

In 2022, SOQ Submission for the Pre-Qualification phase, Evaluation of the Pre-Qualification phase, and launch of the Request for Proposal to Pre-Qualified Bidders.

The Project will be developed by GoM/GoM-owned entities (like EDM, HCB) and a Strategic Partner, on a limited recourse or non-recourse project finance basis through the establishment of a Project Company (“MNK GenCo”).

The power generated from the Project is planned to be evacuated through a new transmission system encompassing a ~1,300 km, high voltage Transmission line from tete to Maputo connecting Cataxa to Maputo (“Mphanda Nkuwa Transmission Project” or “MNTP”).

Creation

Mphanda Nkuwa Hydropower Implementation Office is a dedicated office, created by the Government of Mozambique, Ministry of Mineral Resources and Energy, through Ministerial Diploma 18/2019 of 7 February. GMNK is mandated for the development of the Mphanda Nkuwa Hydropower Project and the associated energy transmission infrastructure.

Functions

• GMNK was established and tasked to lead on the selection of a strategic partner to implement the project and updating existing technical studies.
• Elaboration of the technical, environmental, commercial, legal and financial strategy and structuring of the project until the financial close, with a view to its implementation.