On March 28, 2022, in Vilanculos, Inhambane, the US Government participated in the inauguration of the Central Termica de Temane (CTT) power plant and the Temane Transmission Project (TTP). These two energy projects will help strengthen Mozambique‘s energy security, boost access to affordable energy, and support Mozambique’s contributions to the regional electricity market. The US government provided critical support to both projects through the US Agency for International Development (USAID) and the US International Development Finance Corporation (DFC). Once completed, the 450-megawatt CTT plant will deliver much-needed electricity from the northern part of Inhambane province to the more populous south via the 563-kilometre TTP transmission line.
“The US government, the Mozambican government and other partners worked closely together to bring us here today, inaugurating a project that supports Mozambique in its goal of providing all citizens with access to electricity by 2030,” he said. the Chargé d’Affaires of the Embassy of the United States in Mozambique Abigail Dressel. “The Temane power project is essential to the ongoing economic transformation in Mozambique and southern Africa and we are proud to support it.”
The United States International Development Finance Corporation will provide up to $200 million in a direct loan to CTT, a public-private partnership between Electricidade de Mozambique (EDM), Globeleq and Sasol Africa. The loan will help support the design, construction and eventual operation of the Temane gas-fired power plant, which will bring low-cost baseload power online at 36% below EDM‘s current average cost of power. It will also diversify Mozambique’s energy mix, which currently relies heavily on hydropower. The US Government’s Power Africa initiative, coordinated by USAID, provided EDM with an integrated advisor from January 2018 to December 2020 to support TTP’s evolving technical and organizational needs. The consultant was instrumental in establishing the TTP Project Management Office and moving the project forward to financial close. The construction of the TTP is expected to generate around 3,000 jobs, of which 200 will be permanent once the TTP is operational.
“Power Africa is proud to support the Temane Transmission Project as it connects more people to energy, opens up cross-border business opportunities, strengthens the country’s energy resilience and accelerates economic development,” said Mark Carrato, coordinator for Power Africa.
Increased access to energy supplies and improved economic development are critical components of the US government’s broader assistance in Mozambique. Working closely with the Government of Mozambique, the US Government provides more than $500 million in annual assistance to help Mozambicans build a healthier, more democratic, safer, and more prosperous country for all.
The United States Agency for International Development (USAID) leads the United States government’s international development and disaster assistance through partnerships and investments that save lives, reduce poverty, strengthen democratic governance, and help people out of humanitarian crises. For more information on USAID’s work, visit www.usaid.gov.
Power Africa is a US government-led partnership that harnesses the collective resources of more than 170 public and private sector partners to double access to electricity in sub-Saharan Africa. Since 2013, projects supported by Power Africa have added more than 13,000 MW of cleaner, more reliable electricity and more than 29 million new electrical connections for homes and businesses. Power Africa’s goal is to add at least 30,000 MW and 60 million connections by 2030. To learn more about Power Africa’s work, visit www.usaid.gov/powerafrica.
The US International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest in sectors including energy, healthcare, critical infrastructure and technology. DFC also provides financing for small businesses and women entrepreneurs to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights and workers’ rights. For more information, visit www.dfc.gov.