Energy: Portugal to hand over dam to Mozambique

After years of negotiation Portugal is to give Mozambique a controlling stake in the giant Cahora Bassa hydroelectric dam. Portugal holds an 82 per cent stake in the dam but will hand over control in return for $2.2 billion. The dam was built in the 70s when the country was under Portuguese control.

According to a 2003 article published by Radio Netherlands, "almost all of the electricity generated by the dam goes to South Africa. This has been the case since electricity was first generated there over thirty years ago. That initial agreement signed with the large and dominant neighbour has some surprising clauses. In effect Hidroelectrica Cahora Bassa (HCB), the company that runs the dam, is tied to supplying South Africa with the cheapest electricity in the world".