According to an EDM press release, the contract was signed in Nairobi, during the Sixth Tokyo International Conference on African Development (TICAD VI), held in the Kenyan capital last weekend.
EDM says the proposed new substation will strengthen the supply of reliable electrical power to the province.
The work envisaged under the project is the construction of a 110/33 kV substation, plus three kilometers of 110 kV transmission line, and three pylons, to interconnect with the existing line. There will also be six kilometers of 33 kV medium voltage line and connections to domestic and commercial consumers in Namialo. The package also includes training for EDM staff in operating and maintaining the system.
The substation and auxiliary work is financed through a grant from the Japanese government, via the Japanese International Cooperation Agency (JICA), resulting from an agreement signed between JICA and the Mozambican government in April 2015 for the sum of 2,012 million yen (19.5 million US dollars).
The tender to select the contractor was launched in April this year, and three Japanese companies submitted bids. The bids were opened in Tokyo in June, and Mitsubishi won the tender with a bid of slightly less than 1,500 million yen.
The project should be concluded in February 2018.
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