In June, Greengrants published an article on local communities raising awareness about the socio-economic and environmental impacts of the proposed Mphanda Nkuwa Dam, located on the Zambezi River in Mozambique. The story highlighted Greengrants grantee Voices of the Zambezi and partner Justiça Ambiental and their efforts in organizing the local river communities to resist the dam. Since the publication of that story, there have been several developments surrounding the construction of the dam, its financing, and environmental impact. Most recently, Greengrants Southern Africa advisor Anabela Lemos and her organization Justiça Ambiental were quoted in the New York Times blog Green, Inc, discussing developments in dam financing as well as a new study, A Renewable Energy Plan for Mozambique, co-released with International Rivers.
Energy Security?
As the study from International Rivers and Justiça Ambiental, as well as the proposed electricity consumption percentages show, rural communities in the river basin affected by the dam will clearly not benefit from its construction. The study, released in September, suggests a new energy portfolio for Mozambique, focusing on the fact that the dam will not solve Mozambique’s electricity shortages and will create issues for local farmers because of the unpredictable river flows. The study recommends more sustainable energy sources such as solar and wind energy. As proposed, 90% of the electricity from the dam will be consumed by South Africa’s state-owned power company, Eskom. A portion of this will then be sold back to Mozambique at an increased rate. The remaining 10% will go directly to Mozambique, where only 4.7% of the population currently has access to electricity, and half of this tiny percentage live in the capital, Maputo. Greengrants advisor Anabela Lemos and Justiça Ambiental support a sustainable energy plan that does not include megadams: “It’s time we address our own energy needs; clean, decentralized energy for all should be the top priority, not damming the Zambezi to support energy-hogging industry and cities in South Africa.”
New Interest in Financing Project
As Greengrants reported in the June story, the Export-Import Bank of China, solely owned by China’s central government, was the first company interested in financing the estimated $2 billion to $3.5 billion dollar project. Since then, EDM, a publicly-owned Mozambican electric company; Comargo Correia, a Brazilian construction company; and Energia Capital, a Mozambican investment company, have all indicated interest in financing the Mphanda Nkuwa dam project.
Looking Forward
While the timeline and financing commitments for the proposed Mphanda Nkuwa dam are still unclear, the devastating effects the dam could have on river flows, sediment collection, and river bed agriculture are very clear. There are also serious concerns regarding relocation and compensation for those who live in the dam-impacted area. As the debate between the local environmental organizations, the Mozambican communities, and the Mozambican government and private investors continues, the work of Greengrants grantee Voices of the Zambezi and advisor Anabela Lemos will continue to be a vital part of promoting a sustainable energy future for Mozambique, providing real energy solutions and protecting the water and agricultural resources of the people.