EDM LOSES 400 MILLION TO THEFT IN FIRST HALF OF 2011

Mozambique’s publicly-owned electricity company, EDM, has lost 398.7 million meticais (about 13 million US dollars) in the first half of 2011 due to theft and illegal connections.According to EDM chairperson Manuel Cuambe, the cost of illegal connections and consumption is 380 million meticais, with damage to its infrastructure costing 18.7 million meticais.On Wednesday Cuambe told a press conference in Matola, in the southern province of Maputo, that EDM will seek to reduce the losses.During the first half of the year, EDM sold 1,454 gigawatt hours of electricity, of which 1,201 gigawatt hours were sold to domestic consumers and the remaining 253 gigawatt hours to neighbouring countries, mainly South Africa and Zimbabwe.Cuambe also pointed out that an agreement was reached this year with HCB, the company that operates the Cahora Bassa Dam, for the provision of an extra 100 megawatts of electricity to meet increased demand due to the country's electrification programme.“In total we have built more than 800 kilometres of medium voltage power lines and have installed new transformers to strengthen and expand EDM's distribution network”, he said.EDM is also seeking to improve both the quality of electricity and the services provided to clients.Later this year an electricity transmission line from Tete to Maputo, known as the north-south backbone, is expected to be formally launched. Construction is scheduled to begin in 2014 and be completed by 2017.The first phase of the project is expected to cost up to 2 billion dollars, with funding from the World Bank, Norway, France, European Investment Bank, African Development Bank, Electrobras, and Redes Energeticas Nacionais.EDM, will have a 51 per cent stake in the company managing the project.According to the World Bank, the line is expected to expand electrification in Mozambique from 13 per cent to 20 per cent of the population.