Maputo, 4 Oct (AIM) – The US oil and gas giant ExxonMobil has committed to financing the rehabilitation of the electricity grid in the localities of Quilani, Incularino, Mwa and Quirinde, in Palma district, in the northern Mozambican province of Cabo Delgado.
The rehabilitation, which will benefit around 2,000 residents of Palma, is budgeted at around 500,000 US dollars, to be disbursed by Area 4 partners from the Rovuma basin in Cabo Delgado, represented by ExxonMobil.
Palma is one of the Cabo Delgado districts that has come under attack from islamist terrorists. In March 2021, the jihadists occupied Palma town, causing extensive damage, and murdering those of the inhabitants who did not flee,
Within a month the Mozambican armed forces, with the support of their allies from Rwanda and SADC (Southern African Development Community), were back in control of the ravaged town. Since then the residents of Palma have been trickling back to their homes.
The rehabilitation of the electricity grid in Palma will consist of building eight kilometres of 33 KV transmission, supported on wooden pylons, and installing three 160 kVA transformers.
It will also include the construction of 12 kilometers of low voltage transmission line, and the installation of 150 public lamp-posts.
The work will consist of two phases, the first of which is expected to start in early December and last seven months.
The second phase is due to begin as soon as the first is completed, in 2024, and will rehabilitate the electricity supply at the Quionga and Pundanhar administrative posts.
To this end, the Chairman of the Board of Directors of the publicly owned electricity company, EDM), Marcelino Gildo, and the managing director of ExxonMobil-Mozambique, Arne Gibbs, signed a letter of intent at a ceremony held in Maputo on Tuesday.
The letter establishes the terms and conditions under which EDM and the Area 4 partners will, in the near future, sign a memorandum of understanding to carry out the contract.
“It is our expectation that the implementation of this project will boost initiatives that will contribute to the social and economic development of Palma and the surrounding areas”, said Gildo, minutes after signing the document.
He said that EDM continues to focus on bringing energy to all regions of Mozambique, particularly Cabo Delgado.
He also announced that of the 56 administrative posts in Cabo Delgado, only 13 are not yet electrified, pointing to the terrorist attacks as an obstacle.
For his part, Arne Gibbs said that the project has a powerful message because it shines a light on the residents of Palma.
“The people of Cabo Delgado are strong and resilient, and hope and progress will always prevail”, he declared. “On behalf of Area 4, I would like to extend our sincere thanks for the continued spirit of collaboration we have experienced in working with EDM”.
ExxonMobil is leading the construction and operation of all future natural gas liquefaction and related facilities for the Area 4 deep water block, operated by Mozambique Rovuma Venture (MRV), a joint venture owned by ExxonMobil, the Italian energy company ENI, and CNPC of China.
MRV holds a 70 per cent participation interest in the Area 4 concession contract. Its partners, with ten per cent each, are Kogas of South Korea, GALP of Portugal, and Mozambique’s own National Hydrocarbon Company (ENH).
(AIM)
Cc/ad/pf (559)
