MOZAMBIQUE: U.S. Government Supports Newly Launched Temane Energy Projects

On March 28, 2022, in Vilanculos, Inhambane, the U.S. Government participated in the groundbreaking of the Central Termica de Temane (CTT) power plant and the Temane Transmission Project (TTP).  These two energy projects will help to strengthen Mozambique’s energy security, boost access to affordable energy, and support Mozambique’s contributions to the regional power market.  The U.S. Government provided critical support to both projects through the United States Agency for International Development (USAID) and the U.S. International Development Finance Corporation (DFC). Upon completion, 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-kilometer TTP transmission line.

“The U.S. Government, the Government of Mozambique, and other partners worked closely to get us here today, breaking ground on a project that supports Mozambique in its goal to provide every citizen with access to electricity by 2030,” said Chargé d’Affaires of the U.S. Embassy to Mozambique Abigail Dressel. “The Temane energy project is essential to the economic transformation underway in Mozambique and southern Africa and we’re 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 station, which will bring low-cost baseload energy online at 36% below EDM’s current average cost of power.  It will also diversify Mozambique’s energy mix, currently heavily reliant on hydroelectric power.  The United States Government’s Power Africa initiative, coordinated by USAID, provided EDM with an embedded advisor from January 2018 to December 2020 to support TTP’s evolving organizational and technical needs. The advisor was instrumental in establishing the TTP Project Management Office and advancing the project to financial close. Construction of the TTP is expected to create around 3,000 jobs, of which 200 will be permanent once TTP is operational.

“Power Africa is proud to support the Temane Transmission Project as it connects more people to power, opens up cross-border trade opportunities, strengthens the country’s energy resilience, and accelerates economic development,” said Power Africa Coordinator Mark Carrato.

Increased access to energy supply and improved economic development represent critical components of the broader U.S. Government assistance in Mozambique.  In close collaboration with the Government of Mozambique, the U.S. Government provides more than $500 million in annual assistance to help Mozambicans build a healthier, more democratic, more secure, more prosperous country for all.

The United States Agency for International Development (USAID) leads the U.S. Government’s international development and disaster assistance through partnerships and investments that save lives, reduce poverty, strengthen democratic governance, and help people emerge from humanitarian crises.

Power Africa is a U.S. Government-led partnership that harnesses the collective resources of over 170 public and private sector partners to double access to electricity in sub-Saharan Africa. Since 2013, Power Africa-supported projects have added more than 13,000 MW of cleaner and more reliable electricity and more than 29 million new power connections for homes and businesses.  Power Africa’s goal is to add at least 30,000 MW and 60 million connections by 2030.

U.S. 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 across sectors including energy, healthcare, critical infrastructure, and technology.  DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and workers’ rights.

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