Mozambique government backs Temane power plant with World Bank funds
Cabinet approves a support package including US$65 million from the World Bank to finish the gas-fired plant.
Mozambique's government has approved a support package for the Temane Thermal Power Plant (CTT) project, which is considered of national economic and strategic interest. The Council of Ministers approved the measure on November 4, 2026, to address significant delays caused by Cyclone Freddy, Tropical Storm Filipo, and the contractor abandoning the works. The project aims to generate electricity from natural gas in Inhambane province.
To ensure the plant's completion, the government will mobilise financing from the World Bank to cover Electricidade de Moçambique's (EDM) capital contribution of up to US$65 million. The concession period for the plant will be extended by an additional six months, amending the contract from 28 to 30 years. Financial benefits include reduced concession fees, falling from 3% to 2% during debt repayment and from 8% to 5% thereafter.
The support package also includes a temporary waiver of dividends for EDM, up to US$39 million, after which payments will resume. Additionally, the government will waive its right to claim compensation for delays, up to approximately US$10.8 million. The resolution authorises these financial adjustments and the extension of the concession contract.