Thursday, 27 January 2011


The sale of the 15% of Hydroelectrica de Cahora Bassa (HCB) still held by the Portuguese state has been delayed by haggling over the price, according to the Portuguese newspaper “Diário Económico”. Initially Portugal owned 82% of the dam and Mozambique 18%, but in 2007 Portugal sold a 67% share for $700 million (obtained as a loan from a banking consortium) because the Portuguese government needed to reduce its deficit to meet EU rules. At the time, it was agreed that Portugal would sell the remaining 15% to Portuguese and Mozambican companies, later named as the Zambezi Electricity Company (CEZ) of Mozambique, and REN, the Portuguese state company that runs the Portuguese national grid. The sale should have happened in September 2010, but the two sides continue to disagree about price. The Portuguese also say the price is being depressed because Zimbabwe is still not paying for the electricity it consumes.

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