Mozambique signs funding agreement for electrification

The Mozambique Finance Minister, Manuel Chang, has signed a credit agreement worth US$ 10.5m (AED38.5m) with the Kuwait Fund to support rural electrification in the northern part of the country. According to a press statement carried by AIM, the Mozambique News Agency, the project, with total expect costs of USD55m (AED202m), will cover the northernmost province of Niassa, along with the adjacent districts of Balam and Namuno in Cabo Delgado province. It's initial phase will provide electricity to 32,000 households. The project is being co-funded by the Arab Bank for Economic Development, BADEA, with loans of US$10 million (AED36.7m), and the balance coming from the Islamic Development Bank, the Saudi Fund and the OPEC Fund, with the Mozambique government contributing US$3.3 million from the state budget. BADEA was established in 1975, and is owned by 18 Arab governments, including the United Arab Emirates, which is one of the bank's top five shareholders. Speaking on the signing of the agreement, Chang said, "The implementation of this project will allow the extension and improvement of the electricity grid in that part of northern Mozambique, thus contributing to making viable the strategies of the government expressed in its five-year programme." Chang went on to explain, "These are soft loans, with a period of maturity of 30 years including a six-year grace period, with an interest rate of 2.2 percent."