ENH and EDM can with these funds hire technical expertise they find required for participation in the large investment projects such as Mpande Nkuwa, Temane, Moatize and exploration and use of gas reserves. The agreements aims at strengthening ENH and EDM in its negotiations with international investors as well as strengthening the companies capacity to develop and implement large gas exploration and electricity generation and transmission projects.
Mozambique is privileged by its abundant energy recourses and potential for generation of power, comprising hydro, coal and gas reserves. The urgent need for increased energy supply nationally and in the region makes it important to undertake generation and transmission projects as soon as possible. At the same time it is necessary to ensure that the development of natural resources is done in a way that takes into account that both environmental concerns and socio-economic interests of the Mozambican population are secured in the best way possible. Use of natural resources for large scale energy project may have serious environmental impact. The funds will also be used to strengthen ENH and EDM’s capacity in the area of environmental impact.
Cooperation between Mozambique and Norway in the petroleum and electricity sector has existed for more than thirty years and includes both technical and financial assistance to government institutions in petroleum and hydro-power, as well as investments in transmission and distribution lines. The experiences with the cooperation have been good and Norway is committed to continue its support to the energy sector in Mozambique.