Germany has agreed to contribute about €15 million for the execution of the second phase of the Electricity Grid Modernization Project in Mozambique, APA can report on Wednesday.The project, which is due to start in the next six months, links Beleluane industrial park and the nearby residential areas in Matola, an industrial surburb 15 km southwest of the capital, Maputo.
The agreement was signed in Maputo on Wednesday by Mozambique Deputy Minister for Foreign Affairs and Cooperation, Nyeleti Mondlane on and the German Ambassador Detlev Wolter.
Addressing a media briefing shortly after the signing, Nyeleti Mondlane explained that energy is one of the strategic pillars chosen by the government given the role it plays in economic transformation as well as social inclusion of Mozambicans.
In addition to contributing to the expansion of access to energy and boosting economic activities, the agreement, according to the minister, should reduce “regional imbalances in development between rural and urban areas.”
She stressed that the money should make the power grid “increasingly robust” and, with that, be able to meet growing needs, considering the challenges of the country’s economic diversification.
According to Wolter, the project envisages the construction of a new substation of 66/33 kilovolts and new low voltage networks (33 kilovolts) in the industrial park.
The German diplomat said this will allow the connection of the park with the Electricity de Moçambique (EDM) power grid.
“The project will assume strategic importance in the economic development of Mozambique in the future,” he said, adding that it will boost the business environment as well as job creation in Maputo province.
Germany is one of Mozambique’s largest development partners, and its support includes several sectors including education and health.