Portugal cedes control of major dam to Mozambique

With the handover of control of the Cahora Bassa dam to Mozambique Tuesday, the governments of Mozambique and Portugal brought more than 30 years of negotiations to a close and guaranteed the energy independence of one of Africa's poorest countries.

According to Mozambique News Agency (AIM) on Wednesday, upon signing the pact with Portuguese Prime Minister Jose Socrates, Mozambican President Armando Guebuza declared: "Mozambicans, Cahora is ours." He described the agreement as "historic," and said it was "extremely important in order for Mozambique to take off" economically.

Mozambique's stake in the dam -- the largest in southern Africa - - rose from 18 to 85 percent, which means the country will control a significant share of the regional electricity market. The agreement has thus provided it with a vital source of foreign revenue.

The two governments underscored the "excellent state" of relations between Portugal and its former colony of 22 million people, which it colonized starting in 1498, when Portuguese explorer Vasco da Gama landed on its shores.

The dam, which produces some 2000 MW a year, also supplies South Africa, Zimbabwe and Malawi. Cahora Bassa began to be built, on the Zambezi River, before Mozambique gained independence from Portugal in 1975. However, it did not start to operate until 1977. Then in 1979, the civil war closed it down, and it only began to produce energy again in 1998, after the reconstruction of the main power line.

Maputo will pay 950 million dollars to Portugal to compensate it for the cost of construction and maintenance of the dam, while Lisbon agreed to write off the rest of a 2.5 billion dollar debt contracted 28 years ago.

Source: Xinhua