Energy and Development Access Project

Promoter – Financial Intermediary

EDM – Electricidade de Moçambique

Location

• Mozambique

Description

The project will be implemented in the country’s main provinces (Maputo, Manica, Nampula, Tete and Cabo Delgado) and is part of the ‘Extension of Distribution Networks & Customers Connections’ scheme of the National Energy Sector Development and Access Programme (NEDAP) of the Government of Mozambique that foresees investments across the whole energy sector aimed at facilitating access to modern and affordable energy services in peri-urban and rural areas in Mozambique. The project covers a period of 5 years (2010/2014) and is being co-financed by the EIB, the AFD, World Bank, the OPEC Fund, the Arab Fund and the Government of Mozambique.

Objectives

The project aims mainly at reinforcing primary networks, grid extension and the increase in new connections in peri-urban and rural areas. More than 93 000 customers will be connected and existing substations and transformers will be upgraded in the provinces of Maputo, Manica, Nampula, Tete and Cabo Delgado.

Sector(s)

• Energy

Proposed EIB finance (Approximate amount)

Up to EUR 34 million

Total cost (Approximate amount)

Up to EUR 104 million

Environmental aspects

If the project were located in the EU, all the Bank’s schemes would pertain to Annex II of the EIA Directive leaving it to the national or regional authorities to decide on whether to request an EIA. Following national environmental regulation, each scheme will require an environment assessment study to be approved by the national environmental authority. The schemes will comprise medium and low voltage reinforcements and customers connections to the grid. They are expected to have minimal environment impacts essentially limited to construction ( e.g. dust, traffics disturbances, noise). No resettlement of people is foreseen. In case an EIA is required by the competent authorities, the Bank will require the respective document in time for review and publication on its website.

Procurement

A Procurement Plan will be established allowing each lender to use its own procurement guidelines for the individual schemes that it fully finances. For all schemes co-financed by various lenders, World Bank procedures will apply. The EIB’s schemes will be tendered with parallel publication of tender notices in the OJEU as and where appropriate.

Status

Signed - 10/01/2011