LUSA 10/30/2025

Lusa - Business News - Mozambique: Cahora Bassa dam invests €84.2M to asphalt 117km of road

Maputo, Oct. 29, 2025 (Lusa) - The Cahora Bassa Hydroelectric Plant (HCB) in central Mozambique, one of Africa's largest dams, will invest $98 million (€84.2 million) to asphalt 117 kilometres of National Road 301 (N301), it was announced.

"The road's contract provides for one year of construction and then four years of maintenance, which will be ensured by the contractor," said HCB's Director of Procurement and Logistics, Ilídio Tembe, quoted by the media on Wednesday.

The asphalting work on the 117 kilometres of the N301 road covers the section linking the town of Matambo, in Sofala province, to the town of Songo, in Tete.

According to the official, the work is part of the logistical reinforcement of the company's power plant restructuring project, enabling the "safe and efficient" transport of large-tonnage equipment, essential for modernising energy production in the country.

"The work has been awarded to two national contractors to speed up the execution of the activities. Maintenance costs are included in the road construction budget," he explained.

For the director, the project will also address the impacts of climate change, which have severely damaged access roads, jeopardising mobility and the socio-economic development of local communities.

"What's more, it's expected to have a lifespan of around 20 years. The infrastructure will benefit society without exception," Tembe added.

HCB is a private limited company, 85% owned by the state-owned Companhia Elétrica do Zambeze and 7.5% by Portugal's Redes Energéticas Nacionais (REN). The company holds 3.5% of its own shares, while Mozambican citizens, companies and institutions hold the remaining 4%.

The Cahora Bassa reservoir is the fourth-largest in Africa, employs almost 800 people, and is one of the largest producers of electricity in the southern African region, supplying neighbouring countries.

According to official figures, HCB has paid €1.588 billion to the Mozambican state since 2007.

LCE/ADB // ADB.

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