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DAM-L 2 articles on Cahora Bassa Dam/LS (fwd)
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Date: Tue, 23 Apr 2002 10:37:42 -0700
To: irn-safrica@netvista.net
From: Lori Pottinger <lori@irn.org>
Subject: 2 articles on Cahora Bassa Dam/LS
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November 2001 article on Cahora Bassa negotiations
>03/11/01 MOZAMBIQUE/PORTUGAL
>Secret Talks Over Cahora Bassa Dam
>
>
>Secret talks have been underway between Portuguese and Mozambican
>leaders since last August, concerning the future of the
>Hidroel?ctrica de Cahora Bassa (HCB) company and the Mozambican dam
>that the Portuguese-majority company manages. Heading the
>negotiating teams are Mozambique's mining resources and energy
>minister and Portugal's finance minister, respectively Castigo Langa
>and Guilherme Oliveira Martins. In principle, the Portuguese have
>accepted a "regularization" of the case through the retrocession of
>the Cahora Bassa dam management to Mozambique, through a procedure
>that remains to be determined. But that offer is conditional on the
>Maputo government's commitment to rapidly commence the construction
>work on the dam's northern power plant, which is to generate 500 MW.
>For a cost of between $300- and $400 million, the project has been
>the object of a feasibility study sponsored by the Electricidade de
>Mo?ambique (EDM) and Eskom (South Africa) national companies. The
>Lisbon authorities are convinced that the competition to start the
>work on the northern plant must be launched by the middle of next
>year. However, that plant may suffer from the proximity of the
>current Cahora Bassa dam, which is also on the Zambezi river. In the
>order of priorities, some experts suggest building instead a new
>hydroelectric dam at Mepanda Uncua, whose feasibility studies were
>carried through with aid from France and Germany, but which would
>end up costing $1.5 billion.
>THE INDIAN OCEAN NEWSLETTER N? 970
>02/01/02 MOZAMBIQUE
>Cahora Bassa Bargaining Stalled
>
>In an unusual twist, the resignation of Portuguese prime minister
>Antonio Gutterres has resulted in the suspension of talks on the
>management of Hidroelectrica de Cahora Bassa.
>The prime minister's Partido Socialista suffered a crushing defeat
>in Portugal's Dec. 16, prompting Gutterres to step down and leave
>Portugal with a caretaker government until new legislative elections
>in the spring.
>In the meantime, officials from Mozambique and South Africa - the
>dam's primary customer - who were in Lisbon to resume negotiations
>have suddenly nobody on the Portuguese side to talk to.
>The three sensitive issues that need to be resolved are the huge
>debt owed to Portugal, an increase in the electricity bill that
>South Africa's Eskom will pay and an eventual change in HCB's
>shareholder structure (72% for the Portuguese government and 18% for
>Mozambique). Maputo has vetoed the very idea.
>Following the breakdown in three-sided talks in July, 2001, several
>informal and secretive meetings failed to achieve much progress.
>They were led by Mozambique's mining resources and energy minister,
>Castigo Langa, and Portugal's finance minister, Guilherme Oliveira
>Martins.
>The lone concession on Lisbon's part was the handover of management
>of the Cahora Bassa dam to Mozambique under terms that remain to be
>settled, and on one condition: a quick start to work on a northern
>power station at Cahora Bassa with a capacity of 500 MW. The
>facility is expected to cost between $300-400 million, and a
>feasibility study sponsored by Electricidade de Mozambique (EDM) and
>Eskom is now being carried out on it.
>However, some experts criticize the scheme on grounds the new unit
>would be too close to the first power station. They are suggesting
>an alternative: construction of a hydroelectric dam at Mepanda
>Uncua. Feasibility studies have been carried out on it with
>financial assistance from France and Germany but the dam in question
>would cost an estimated $1.5 billion.
AFRICA ENERGY INTELLIGENCE N? 313
Ryan Hoover
Africa Campaigns
International Rivers Network
1847 Berkeley Way
Berkeley, CA 94703
USA
Phone: (510) 848-1155 Fax: (510) 848-1008
www.irn.org
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