Mozambique formally takes control of Cahora Bassa

Mozambique on Tuesday formally took over from Portugal the control of Cahora Bassa hydroelectric dam, Africa’s second most important after that of Aswan in Egypt.

“The control of the dam signifies for us the elimination of the last vestiges of European colonialism in Africa,” Mozambican President Armando Guebuza said before a crowd of 10 000 people who witnessed the event, broadcast on the national television.

Four other Southern African heads of state were present at the ceremony, which took place at the site of the dam in Songo, in the country’s central Tete province.

The control of the dam, which was erstwhile held principally by former colonial power Portugal, is expected to fetch the African nation more than $150-million annually.

“From these $150-million a year, we are going to pay over 15 years a loan of $700-million from a Franco-Portugal Calyon/BPI bank consortium taken to buy the part of capital held by Portugul,” Energy Minister Salvador Namburete told AFP.

“A part of the revenues [10%] derived from the sale of power from the dam to neighbouring countries would fuel the state economy,” he said.

Since the country gained independence in 1975, the Cahora Bassa dam was owned 82% by Portugal, while Mozambique held only 18% of the capital.

After paying $700-millions to Portugal—the last slice of a total of $950-millions fixed following accords signed between the two countries last year—Mozambique has recovered 85% of the dam’s capital, with 15% still left with Portugal.—Sapa-AFP