Temane Regional Electricity Project (WB-P160427)

Countries
  • Mozambique
Where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Feb 28, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Government of Mozambique
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 1,180.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Feb 26, 2019

Disclosed by Bank Nov 8, 2017


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Project Description

According to bank documents, the project objectives are to increase electricity generation capacity with private sector participation and to enhance transmission capacity for domestic and regional market. 

The proposed project includes the following components:

  1. Construction of Temane Transmission Project (TTP). This component includes construction of:
    1. three 400-kV substations (Vilanculos, Chibuto, and Matalane) and expansion of Maputo subtation;
    2. 560-km, 400-kV single-circuit transmission line Vilanculos-Chibuto-Matalane-Maputo; and
    3. other equipment (busbar and line reactors, telecommunications, SCADA with control center).
  2. Construction of privately-funded Mozambique-Gas-to-Power (MGtP) generation project. This component includes construction of:
    1. 400-MW gas-fired power plant at Temane (near Vilanculos); and
    2. a 25-km, double circuit, 400-kV transmission line from the MGtP plant at Temane site to a 400-kV substation at Vilanculos, linking the power plant to the national transmission grid. 
  3. EdM financial strengthening. EdM is in the process of developing a financial strengthening plan, that is likely to include measure for efficiency improvements (reduction of losses), supply cost optimization, tariff adjustments, recapitalization (possibly to include converting some long-term on-lent loans into Government equity, possible equity injection), reducing the accounts payable and accounts receivable, readjustment in investment financing (especially for expansion of access), etc. This component could include credit enhancement to EdM to help restructure or refinance some of its obligations, and/or technical assistance to help implement the financial strengthening plan.
  4. Component 4: Technical assistance and project implementation support. This component will include funding to support MIREME in advancing legal, institutional, and regulatory framework in the sector, strengthening the capacity of the key sectoral institutions (policy and regulatory), and strengthening/supporting EdM in implementing the financial strengthening plan, and to manage implementation of the project.


Investment Description
  • World Bank (WB)
Contact Information

World Bank:
Zayra Luz Gabriela Romo Mercado, Donald Joseph Purka, Vladislav Vucetic
Senior Energy Specialist

Borrower:
Ministry of Finance

Implementing Agency:
Ministry of Mineral Resources and Energy
Eugenio Simbine
Director Planning and Studies
egsimbine@gmail.com

Electricidade de Mozambique
Joaquim Ou-Chim
Head of Projects
joaquim.ou-chim@edm.co.mz

ACCOUNTABILITY MECHANISM OF WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.