Mozambique’s government announced that Brazilian-based Camargo Correia had signed an agreement of understanding to invest $3.2 billion in a new dam aimed at providing energy to southern Africa.
The Brazilian-based private construction firm would build and potentially operate the dam in the Tete province located in the northern region of the country, said Mozambique’s Planning and Development Minister Aiuba Quereneia.
The dam would have production capacity of 1,500 MW of electricity, which will be transported to countries like South Africa.
"We would want the building of the dam to begin at least by July next year as part of our strategy to secure Mozambique and the region´s energy needs," he said, adding that he expected a final contract to be signed shortly.
The company will still need to find funding for the project although Mozambique hopes the new plant will be completed by 2013.