Mozambique’s Hydro Electric Company, HCB says it will soon begin the construction of a $2 billion hydro-electric dam in a bid to increase power generation and attract foreign investments, APA learns here on Monday.HCB chairman, Paulo Muxanga said the company was working with the government on expanding electricity production capacity through construction of the North Plant that will add about 1,250 megawatts to the current production of 2,250 megawatts.

The 4th Seminar on HCB’s contribution to Mozambique’s development on Monday, Muxanga said the current energy scenario differs entirely from the situation 40 years ago, when consumption throughout the country barely totaled 100 megawatts. Current estimates indicate that Mozambique consumes more than 500 megawatts of electricity per year, excluding the Mozal aluminium smelter, located in the Belulane Industrial Park in the southern province of Maputo, according to the state-controllled.

A company was undergoing a period of great financial strength, and this was clear from the fact that it had already repaid 72 percent of the $900 million loan it took on from a banking syndicate to pay for most of the shares in the company hitherto held by Portugal. A Company should proceed with full repayment of the loan by the end of 2016, contrary to the provisions in the contract that pointed to December 2017.