South Korea to help build solar power plants in Mozambique

'Green aid' to help establish eco-friendly infrastructure elsewhere in Africa.

By

Agence France-Presse

Tue, Oct 19 2010 at 5:48 AM

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Alternative Energy, Green Energy

Photo: David Wasserman/Jupiterimages

The finance ministry said the loan, from the Economic Development Cooperation Fund, will be offered interest-free for 40 years including a grace period of 15 years.

The three solar plants generating 400-500 kilowatts will be built in Niassa, a northern province that suffers severe power shortages.

"The project is expected to contribute to balanced development in Mozambique by easing the energy supply gap between urban and rural areas," a ministry statement said.

Mozambique has a serious polarisation in energy supply, with only two percent receiving electrical power in rural areas and 22 percent in urban areas.

The ministry said it plans to actively expand "green aid" through the development fund to help establish eco-friendly infrastructure elsewhere in Africa.

Training to operate and maintain the plants plus equipment will be provided as part of the deal.