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Press Releases

April 20, 2015

Signing of Grant Agreement with the Republic of Mozambique
Constructing a new substation to stabilize the power supply in the Nacala Corridor region

photoSigning ceremony

On April 2, the Japan International Cooperation Agency (JICA) signed a grant agreement with the Government of the Republic of Mozambique to provide grant aid of up to 2.012 billion yen for the Project for Reinforcement of Transmission Network in Nacala Corridor.

This project will construct a new substation in Nampula Province in northern Mozambique, improving and stabilizing the capacity to supply power to the northern part of the country, where the power demand is rising.

The electrification rate of northern and central Mozambique is approximately 14 percent, which is far below the rate of approximately 50 percent in southern Mozambique. Moreover, there are not enough substations in the Nacala Corridor region,* and existing ones have deteriorated to the point that a power outage occurs every other day. The region, which has potential for natural resource and agricultural development, is expected to undergo a rapid increase in the demand for power, from 160 megawatts in 2011 to 1,000 megawatts in 2021, and developing power in the mid- to long-term while boosting the existing power system is a challenge.

Through this project, a substation will be constructed, increasing the capacity of the facilities in the target region from 16 to 56 megavolt-amperes. This is expected to improve and stabilize the capacity to supply power, stimulate economic activities, and improve the lives of residents. In addition to support for economic infrastructure through this project, the Nacala Port, trunk roads, bridges and the like along the Nacala Corridor, JICA provides support in social development in areas such as agriculture, education and health, contributing to comprehensive regional development.


* The Nacala Corridor is the region along the international road that runs from the Nacala Port, the gateway to northern Mozambique, through Malawi’s capital of Lilongwe to Zambia’s capital of Lusaka.


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