South Korea to finance photovoltaic power stations

The governments of Mozambique and South Korea have signed two loan agreements totalling 60 million US dollars to finance the setting up of an Emergency Information Management System and the building of three photovoltaic power stations.

The accords were signed on Thursday in Maputo by the Mozambican Minister of Finance, Manuel Chang, and the vice-president of the Export-Import Bank of South Korea, Sang Wan Byun.

Under the agreement, 35 million dollars will be used to finance the construction of solar power stations in the districts of Muembe, Mecula and Mavago, in the northern province of Niassa.

Chang said that these power stations will supply electricity to contribute to economic growth, an improved quality of life, and social well-being.

The Emergency Information Management System, costing 25 million dollars, will improve the communications systems of the Mozambican police, fire brigade and emergency medical services. In the initial phase, it will be implemented in Maputo and the neighbouring city of Matola.

Chang said that the loans will be on concessional terms over a 40 year period, including a 15 year grace period, with an interest rate of 0.01 per cent. He continued that the loans are recognition by the government of South Korea of the efforts of the Mozambican government to design and develop projects in the areas of health, information technology, renewable energy and infrastructure.

The Minister pointed out that in 2010 three agreements were signed with South Korea for loans totalling 114.1 million dollars to finance the construction of the new Quelimane Central Hospital (45 million dollars), the rehabilitation of the highway between Nampula and Cuamba along the Nacala Corridor (20 million dollars), and rural electrification in the southern province of Gaza (49 million dollars).

Sang Wan Byun said that he expects relations between the two countries to continue to grow.

Post published in: Africa News

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