Improved infrastructure and access to reliable and sustainable energy resources, especially in rural areas, are fundamental for poverty alleviation and a broad based economic development. Strong support to the energy sector as well as the road sector has therefore, ever since 1979, been one of the cornerstones of the Swedish support to Mozambique. Over the years Sweden has funded investments in the implementation of several transmission, distribution and generation projects as well as roads with a special focus on rural areas.

The agreements, signed yesterday, are the following:

• 6, 9 million USD in support for the refurbishment of the two hydro power plants Mawuzi and Chicamba in the Manica province. The grant is an addition to an already existing agreement giving a total amount of 44 million USD.
• 6, 4 million USD in support for the national program for decentralized management of Regional Roads (SDMRR-project). The grant is an addition to an already existing agreement giving a total amount of 27 million USD. The program includes rehabilitation of regional roads, technical assistance to ANE and the Road Fund as well as support to improved road safety.
• 857 000 USD in support for the financing of two new generators to Temane gas fired power plant in the Inhambane province. The grant is an addition to an already existing agreement giving a total amount of 7, 9 million USD.
• Prolongation of the activity period for a rural electrification project in the Niassa province with 6 months. The original agreement amounts to 8, 3 million USD.
• Prolongation of the activity period for a rural electrification project in the Sofala, Manica and Tête provinces (SMT-rural electrification project) with one year. The original agreement amounting to 31 million USD.
• Prolongation of the activity period for the rehabilitation of the N 14 in the Niassa Province with one year. The original agreement amounting to 30 million USD.