Mozambique: Hydro of Cahora Bassa can advance in three years the payment of debt


Beira, Mozambique, February 15 - The Hidroeléctrica de Cahora Bassa (HCB) could pay off sooner than anticipated the debt contracted to take a majority shareholder, said in Beira the Chairman of the Board of Directors of the company.

In statements to the newspaper Diario de Mozambique, Paulo Muxanga said, to keep the current financial performance of the company, the deadline for payment of the debt may be reduced from ten to seven years.

The change of shareholding structure in favor of Mozambique involved the payment to Portugal of 950 million dollars, 250 million of which were paid after the signing of their agreement on 31 October 2006 in Maputo.

The second "tranche" of 700 million dollars was financed by a consortium consisting of the Portuguese bank BPI and the French Calyon.

The agreement on the HCB has resulted in Mozambique it with 85 percent of the shares, as well as its effective management, reducing Portugal its participation to 15 percent (previously, Mozambique controlled 18 percent of the venture and Portugal 82 percent) .

Meanwhile, a team of Canadian firm Manitoba Hydro - the fourth largest company in the sector in Canada - hired to manage the operations of HCB and give technical advice, conducted last week examination of the venture, which ended with positive note