Germany has signed an agreement with Mozambique to finance the €15 million, Phase II of the project to modernize the country's electricity grid. The agreement was signed Wednesday in Maputo by Deputy Mozambican Minister of Foreign Affairs and Cooperation, Nyeleti Mondlane, and Germany's ambassador to Mozambique, Detlev Wolter.
It will enable the construction of a new substation of 66/33 KV and new low-voltage networks (33 KV) in the Beleluane industrial park. The project, which is expected to begin in the next six months, will connect the power grid at the park to neighboring residential areas in Matola.
This new funding from Germany follows €157.5 million in financing to Mozambique last March for various development projects. €39 million of these funds were earmarked for a regional transport network between Mozambique and Malawi and a short-term investment plan for the national electricity company EdM.