Communication - Presse

HCB Plans to Invest 1.2 MM€ in Dam Modernization

According to the 2025 Annual Report and Financial Statements, the company secured a 100 million euro credit line from the French Development Agency (AFD) to finance part of the rehabilitation and modernization work on the South Power Plant.

The project will also receive a grant from the European Union, channeled through the AFD, to support initiatives in the areas of water management, vocational training, digitalization, cybersecurity, strengthening power transmission lines, and implementing gender equality policies.

HCB operates, under a concession agreement, the Cahora Bassa hydroelectric project, one of Africa’s largest energy infrastructure projects. The project includes the South Plant, currently in operation with an installed capacity of 2,075 megawatts, and a planned North Plant with the potential to add another 1,200 megawatts. The complex also includes the Songo converter substation and associated transmission lines, and plans call for the installation of a solar power plant.

The modernization program comes after a year marked by a sharp drop in energy production caused by hydrological constraints associated with the El Niño phenomenon. According to the company, these conditions reduced production and negatively impacted the 2025 financial results.

HCB’s net income fell 49.6%, from 190.5 million euros in 2024 to 96.3 million euros last year. Revenue from sales and services declined 37.1% to 297.8 million euros, in line with the reduction in the volume of energy sold.

Electricity sales totaled 9.9 million megawatt-hours, down 31.1% from the 14.4 million recorded in 2024. Nevertheless, the company maintained a positive operating profit of 114.7 million euros and ended the fiscal year with assets exceeding 1.37 billion euros.

For 2026, management forecasts an improvement in results, supported by the recovery of the reservoir’s storage levels. Storage capacity increased from 27.23% at the end of 2025 to 51.67% on March 25 of this year, whereas on the same date in 2025, it stood at 26.03%.

“This development bodes well for 2026, with better results expected compared to 2025,” the administration states in the report.

Source: https://360mozambique.com/oil-gas/energy/hcb-plans-to-invest-1-2-mme-in-dam-modernization/