After nearly seven years, the Brazilian government intends to resume funding of the Moamba Major dam project in Mozambique, according to reports.
Located on the Incomati River in the Moamba District of the state of Maputo, the dam will create a 760 million cubic-metre reservoir to serve the Greater Maputo Metropolitan Region. More than three million people live in the region, which comprises the cities of Maputo and neighbouring Matola, as well as the districts of Boane and Marracuene.
Ademar da Cruz, Brazilian ambassador to Mozambique, told Notícias that there have been “significant developments” in high-level talks and they are “optimistic that the funding will be unlocked”.
[See more: Seven potential investors line up for Mozambique’s US$5 billion hydroelectric dam]
Negotiations around the dam project began in 2013 and construction was set to start in May 2016. However, reviews of 25 projects financed by the Brazilian National Social and Economic Development Bank (BNDES) began the same month, among them the Moamba Major Dam.
All of the projects under review were either in countries with high economic risk or involved Brazilian companies under investigation at the time. While initially deemed “safe,” the dam lost its funding by the end of 2016.
Now officials in both governments have been discussing the creation of a financial instrument to quickly release the US$700 million in funding needed for the dam. Speaking to Notícias, Ambassador Da Cruz guaranteed that BNDES sees no barrier to resuming funding.
