Page 7 - AfrElec Week 31

AfrElec GAS-FIRED GENERATION AfrElec

Afreximbank lends $400mn to

Mozambique LNG

MOZAMBIQUE THE African Export-Import Bank (Afrex- (tpy).
imbank) is to commit up to $400mn in guar- A key focus is for the project to be developed
antees and direct lending to support the Area 1 in an environmentally and socially sustainable
LNG Project in Mozambique. manner and that it operates responsibly, protect-
The total project is estimated to cost about ing the environment, as well as the health and
$24bn and is set to be one of the largest private safety of the public, employees and contractors.
foreign direct investments (FDIs) in Africa, and The $400mn commitment to the project is in
one of the largest LNG projects in the world. It line with Afreximbank’s strategy of promoting
will play a key role in Mozambique’s economic intra-African trade as well as industrialisation
growth and support the wider region. and export development.
The $400mn will be used to partially finance The guarantee is being done jointly with
the project development activities required Export Credit Insurance Corporation of South
to extract natural gas offshore, its transfer to Africa (ECIC), which has enabled a significant
onshore processing facilities and then its con- African contribution to the overall financing of
version to LNG for export to various markets the project.
around the world. This joint collaboration is offered under
“We are confident the Mozambique LNG pro- the South Africa-Africa Trade and Investment
ject will create opportunities for the people of the Promotion Programme (SATIPP), launched in
country and drive sustainable economic growth. 2018, to promote and expand trade and invest-
We believe that the success of projects such as ments between South Africa and the rest of the
this will create a precedent through which other continent.
development projects in Africa can secure fund- In line with Afreximbank’s strategy of using
ing and gain international traction,” said Bene- partnerships to promote trade and investments
dict Oramah, president of Afreximbank. in Africa, Afreximbank is once again deploying
The Mozambique Area 1 LNG project is an its ECA-Plus guarantee, offered under the Afrex-
integrated LNG development that will initially imbank Guarantee Programme (AFGAP), to
comprise two LNG liquefaction trains – each support this project.™
capable of processing 6.44mn tonnes per year

HYDRO
GERD talks again fail to make headway

THIS week’s talks on the Grand Ethiopian 2010 by six riparian, or riverside, states, but not
ETHIOPIA Renaissance Dam (GERD) are in danger as disa- Egypt and Sudan, which regulated the construc-
greement over future water-sharing agreements tion of irrigation projects and dams on the river.
prompted Sudan to threaten to walk out and “This is a significant development and a
Egypt to call for the talks to be suspended. change in the Ethiopian position,” the Sudanese
Sudan claimed that Ethiopia had proposed minister said.
making any agreement on filling and manag- “This new Ethiopian position threatens
ing the dam at the GERD project dependent on the negotiations under the aegis of the African
renegotiating historic international treaties to Union, and Sudan will not participate in negoti-
manage the Nile waters. ations which include the subject of sharing Blue
Sudan’s water and irrigation minister, Yasser Nile waters,” he said.
Abbas, said his Ethiopian counterpart had writ- “Sudan will not allow the lives of 20mn citi-
ten to him to propose that “the deal under dis- zens who live along the Blue Nile to be tied to an
cussion be limited to filling up the dam and any agreement on sharing the water of this river,” the
deal concerning its management be linked to the minister said.
question of sharing Blue Nile waters”. The Egyptian water ministry said in a state-
The dispute rests on different treaties signed ment that Ethiopia’s draft proposals also did
during the last century to manage the Nile’s water not include any regulations on the operation of
flows. Egypt and Sudan claim they have a “his- the dam or any legal obligations, neither did it
toric right” to the water guaranteed by treaties include a legal mechanism for settling disputes.
concluded in 1929 and 1959. “Egypt and Sudan demanded meetings be
However, Ethiopia points to a treaty signed in suspended for internal consultations on the

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