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World Bank’s IFC backs Mozambique’s key power transmission line project

Mozambique’s first independent power transmission project, a US$400m development by UK-based Gridworks, has secured funding from the World Bank Group’s International Finance Corporation (IFC) to support Phases II and III of the 460 km Chimuara-Nacala transmission line connecting central and northern Mozambique. 

Gridworks, backed by the UK government and a subsidiary of British International Investment, is partnering with Mozambique’s national utility, Electricidade de Moçambique (EDM), to deliver this privately financed project. Announced in June 2024, the project comprises a 400 kV line from Alto Molócuè to Namialo (272 km), and two 220 kV lines from Namialo to Nampula (98 km) and to Nacala-à-Velha (90 km). The project is being built in three phases, with the construction of Phase I already completed by EDM. According to the IFC, this development will enhance grid reliability, support industrial growth, and facilitate increased renewable energy integration in Mozambique.

With industrial power demand rising and 40% of the population lacking electricity access, Chimuara-Nacala is a top government priority.