Construction of the 1,500 MW Mpanda hydropower project in Mozambique may not be completed in 2017 as scheduled. Construction was expected to start in 2012 but negotiations between the companies which will purchase the electricity produced at the site (Eskom and Electricidade de Mozambique) and the financial package have not been completed yet. Mozambique, which will not consume all the power generated by the dam, needs to conclude purchase agreement with South Africa to secure the project. The project will also depend on the construction of a new High voltage line between Maputo and the dam in Tete province. The European Investment Bank agreed to partly finance the initial technical and environmental studies for the $2bn project. The environmental impact study, conducted by Coba and Impacto Lda, are scheduled for completion in June 2011. Once preparatory work is completed, Camargo Correa (Brazil) and the local company Insitec are building the dam.
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