Temane Regional Electricity Project (WB-P160427)

Countries
  • Mozambique
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Feb 28, 2019
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Mozambique
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. 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, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents 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
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed 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
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

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.

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