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KfW announces funding for Mozambique hydropower project rehabilitations

Mozambique

German development bank Kreditanstalt fur Wiederaufbau (KfW) has announced it will provide US$23.5 million for renovations of the Chicamba and Mavuzi hydroelectric plants, as per terms of a contract signed with power company Electricidade de Mozambique (EdM).

HydroWorld.com reported in November 2011 that EdM had assumed control of the projects after being "abandoned" by their previous owner in 1978.

Chicamba and Mavuzi are reported to have installed capacities of 38.4 MW and 52 MW, respectively, though EdM chairman Augusto do Sousa said the 50-year old plants have been operating below their capacity for some time now.

Rehabilitation of the plants is expected to cost $120 million, with an additional $46.1 million coming from Swedish investors and another $65.5 million from French investors.

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