The United States participated in the groundbreaking of the Central Termica de Temane (CTT) power plant and the Temane Transmission Project at Vilanculos, Inhambane, on March 28, 2022. (TTP). These two energy projects will contribute to Mozambique’s energy security, increase access to inexpensive electricity, and enhance the country’s participation in the regional power market. Through the United States Agency for International Development (USAID) and the United States International Development Finance Corporation, the US government provided crucial support to both projects (DFC). The 563-kilometer TTP transmission line will provide much-needed electricity from the northern section of Inhambane Province to the more populous south after the 450-megawatt CTT plant is completed.
“The US government, the government of Mozambique, and other partners collaborated closely to get us here today, breaking ground on a project that will help Mozambique achieve its goal of providing electricity to every citizen by 2030,” said Abigail Dressel, Chargé d’Affaires of the US Embassy in Mozambique. “We’re happy to support the Temane energy project, which is critical to Mozambique’s and Southern Africa’s economic transition.”
CTT, a public-private collaboration comprising Electricidade de Mozambique (EDM), Globeleq, and Sasol Africa, will get a direct loan from the United States’ International Development Finance Corporation for up to $200 million.
The financing will go toward the design, building, and ultimate operation of the Temane gas-fired power plant, which will bring low-cost baseload electricity online at a cost that is 36% lower than EDM’s current average power cost. It will also help Mozambique diversify its energy mix, which is now dominated by hydroelectric electricity. From January 2018 to December 2020, the United States Government’s Power Africa initiative, managed by USAID, provided EDM with an embedded advisor to assist TTP’s evolving organizational and technical needs. The adviser played a key role in establishing the TTP Project Management Office and bringing the project to a successful conclusion. Around 3,000 jobs are projected to be created during the construction of the TTP, with 200 of them being permanent once it is operational.
“Power Africa is happy to support the Temane Transmission Project because it connects more people to power, expands cross-border trade opportunities, increases the country’s energy resilience, and speeds up economic development,” said Mark Carrato, Power Africa Coordinator.
Increased access to energy and increased economic development are key elements of the US government’s overall support to Mozambique. The United States offers more than $500 million in annual aid to help Mozambicans develop a healthier, more democratic, more secure, and wealthier society for all in close collaboration with the Mozambican government.
The United States Agency for International Development (USAID) directs the federal government’s international development and disaster relief efforts through partnerships and investments that save lives, reduce poverty, strengthen democratic governance, and assist people in overcoming humanitarian crises. Visit www.usaid.gov for more information on USAID’s efforts.
Power Africa is a US government-led initiative that aims to double access to power in Sub-Saharan Africa by pooling the resources of over 170 public and commercial sector partners. Since 2013, Power Africa-supported projects have added over 13,000 MW of cleaner, more dependable electricity and over 29 million new household and business power connections. By 2030, Power Africa hopes to have added at least 30,000 MW and 60 million connections.
The US International Development Finance Corporation (DFC) collaborates with the private sector to fund solutions to the world’s most pressing problems. Energy, healthcare, essential infrastructure, and technology are among the sectors in which we invest. In order to create jobs in emerging countries, DFC also provides funding to small firms and women entrepreneurs. DFC investments adhere to strict guidelines and respect the environment, human rights, and labor rights.
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