Mozambique’s publicly-owned electricity company, EDM, has agreed to sell 50 megawatts of power to Zimbabwe, a report claims.
The report further claims that a memorandum of understanding to this effect was signed in Maputo on Thursday between EDM chairperson Ali Sicola, and the Zimbabwe Electricity Supply Authority (ZESA), Chief Executive Officer Patrick Chivaura.
Following the deal, EDM will commence supplying power to Zimbabwe in October this year. The sales contract is valid for two years.
Under the deal, ZESA will pay EDM $4 million per month.
According to Sicola, EDM cannot sell more than 50 megawatts, but the two companies will look for additional sources of power.
ZESA will pay $3 million this month, and then $250 000 per week to clear a debt that dates back to 2017.
The arrangement between ZESA and EDM is separate from the 50 megawatts that ZESA has been buying from Hidroelectrica de Cahora Bassa, the company that operates the Cahora Bassa dam on the Zambezi.