Redes Energéticas Nacionais (REN) of Portugal has aquired a 7.5% stake in the Cahora Bassa hydroelectric project in Mozambique, newswires have reported.
The power grid company purchased the interest from Portugal’s Parpública for EUR38.4M. Details on the deal were previously announced in April, subject to certain conditions. A statement from REN said these conditions had been met, and the shares have now been transferred to the company.
Late last year, Mozambique announced its intention to increase the capacity of the project from 2075MW to 3220MW by 2016 to help meet power demands in the country. The expansion is expected to cost $1B and will be funded by the operating company and private investors. Work is planned for early 2013, following completion of geological and hydrological studies.