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 would interconnect three countries, South Africa, Eswatini (formerly Swaziland) , and Mozambique in southern Africa. This would be MIGA's first project in Eswatini. The MIGA guarantee would cover the investment against the risks of expropriation and war and civil disturbance.
The project would be constructing and operating two 300 kilometer, 400 kilovolt overhead transmission lines and substations designed to provide a supply of electricity that would extend from South Africa across Eswatini to Maputo, Mozambique. Motraco, incorporated in Mozambique, would 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 Eswatini Electricity Board (EEB).
The project would 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 would improve the availability and quality of electricity supply to Mozambique and Eswatini, and would provide the necessary electricity infrastructure to facilitate the development of other large industrial projects in the area. The project would also promote technology transfer through Eskom's commitment to train and then transfer responsibility to EdM and EEB personnel in the operation of high voltage transmission systems.
