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Monday, 10 February 2014

Japan to fund Mozambique power plant

Japan is to spend US$174-million building a new gas-fired power plant in Mozambique to help the southern African nation's fast-growing economy keep up with electricity demand, the national power utility is quoted as saying in The Africa Report.

Mozambique has seen a spike in foreign investment since it hit on huge gas reserves, but power shortages threaten the development of industry and economic growth.

Power demand, which is at about 800 megawatts (MW) at peak times, already outstrips supply of around 700MW in the former Portuguese colony, whose economy is expected to grow by 14% this year.

"The construction of infrastructure will not only increase the availability and quality of electricity in the south of the country, but aims to ensure a back-up to the city of Maputo," said Fernando Augusto de Sousa, CE of Electricidade de Mocambique at the signing of the agreement in January.