Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Motraco-Mozambique Transmission Company S.A.R.L.
- Project ID
- Fiscal year
- Guarantee holder
Electricity Utility of the Republic of South Africa
- Investor country
- Host country
- Gross exposure
- $69.4 million
- Project type
MIGA issued two guarantees totaling $69.4 million to the Electricity Utility of the Republic of South Africa (Eskom) to cover loan guarantees to the European Investment Bank and the Japan Bank of International Cooperation for their investments in Motraco-Mozambique Transmission Company S.A.R.L. (Motraco). The project involves the construction and operation of electricity transmission lines that will interconnect three countries, South Africa, Swaziland, and Mozambique in southern Africa. This will be MIGA's first project in Swaziland. The MIGA guarantee will cover the investment against the risks of expropriation and war and civil disturbance.
The project will be constructing and operating two 300 kilometer, 400 kilovolt overhead transmission lines and substations designed to provide a supply of electricity that will extend from South Africa across Swaziland to Maputo, Mozambique. Motraco, incorporated in Mozambique, will construct, own, and facilitate the project as a joint venture between the three national power companies: Eskom of South Africa, Electricidade de Mocambique (EdM), and the Swaziland Electricity Board (SEB).
The project will supply electricity to the Mozal aluminium smelter, an anchor project with significant demonstration effect on foreign investment in the Maputo Corridor area. In addition, the project will improve the availability and quality of electricity supply to Mozambique and Swaziland, and will provide the necessary electricity infrastructure to facilitate the development of other large industrial projects in the area. The project will also promote technology transfer through Eskom's commitment to train and then transfer responsibility to EdM and SEB personnel in the operation of high voltage transmission systems.