Rehabilitation of the Cahora Bassa Hydropower Plant in Mozambique <p>The Capex Vital program is the ten-year infrastructure rehabilitation and upgrade program of Hidroeléctrica de Cahora Bassa (HCB). The objectives of the Program are multiple. Above all, it will secure access to affordable and clean electricity for Mozambican, South African and Zimbabwean households, HCB¿s electricity production price being the lowest in the clients¿ electricity mix. As this is a low-emission energy, the project will strengthen the role of renewable energies in the energy mix. In addition, the Project will bring economic and social benefits (i) at the government level through taxes and dividends paid by HCB to the Mozambican State and (ii) at the local level through the creation of jobs and revenues to the local economy. HCB currently has nearly 1528 employees, including 767 permanent employees, with the majority based in Songo (a very remote area in the centre of Mozambique), Maputo, Tete and Chimoio,&nbsp;&nbsp;To achieve the specific objectives stated above, the CAPEX Vital program includes a list of projects of which two will be financed by AFD and AfDB:&nbsp;(i) Brownfield Phase III High Voltage DC Substation Rehabilitation - Brownfield Phase III: Currently, Songo¿s High Voltage Direct Current substation is considered as the weak link in HCB¿s power transmission chain, due to the wear and tear of its conversion equipment, which is mostly at the end of its useful life. This component, estimated at USD 321 million, is the main investment of the CAPEX Vital program. For this component, the procurement phase was launched in 2020, and HCB hopes to begin work beginning of 2024 with execution up to 2029. (ii) Hydroelectric Power Plant Rehabilitation ¿ Reabsul Phase II: In order to maintain and improve the performance of the plant, it is necessary to rehabilitate and modernise the five generators and auxiliary equipment of the power plant. This component, estimated at USD 207 million, is the second largest investment of the CAPEX Vital program. Following a pre-qualification phase launched in 2018, three companies were pre-selected at the end of 2020. Beginning of the works is planned in the first quarter of 2023 with execution up to 2030.&nbsp;The activities funded by the EU will increase the sustainability as well as the environmental and social benefits of the rehabilitation of the Cahora Bassa power Plant and HVDC substation. The components funded by the grant are designed to strengthen HCB¿s capacity to successfully implement and increase the benefits of the CAPEX Vital 10 Years Program. This will be achieved through better water management (hydrologic forecasting, lake monitoring, emergency plan), increased resilience of its transmission infrastructure to climate change (HCB 533 kV strengthening of river crossings) and protection against cyberterrorism (Cybersecurity action plan), development of its human capacities (training centre development and gender mainstreaming) and of its digitalization and communication capacities (OPGW).</p>