Lisbon, Portugal, 4 March – The 15 percent stake owned by the Portuguese state in the Cahora Bassa Hydroelectric Dam (HCB) is to be sold, preferably to Portuguese companies in the energy sector, the Portuguese press reported.

The move is still being considered but it is necessary to ensure that Mozambique agrees, as was accepted at the time of the agreement between the two countries to alter HCB’s shareholder structure.

Under the terms of that deal, Mozambique saw its stake in HCB increase from 18 to 85 percent of shares and Portugal kept 15 percent, of which it had to sell 5 percent to a partner chosen by Mozambique.

In return Mozambique paid Portugal US$250 million directly from HCB’s funds and US$700 million were due to be paid by the Mozambican state. As part of this deal, Portugal also pardoned Mozambique’s debt related to the dam worth some US$1.6 billion.

In November 2007, Portuguese Finance Minister Fernando Teixeira dos Santos, said in Songo, in Mozambique’s Tete province that Portugal would immediately hand over 5 percent of the 15 percent stake in HCB to Mozambique.

Teixeira dos Santos also said at the time that, in terms of the remaining 10 percent Portugal would “opportunely take the measure it believes necessary as, because it is a financial stake it will divest it as it sees fit, when it sees fit.”

The Portuguese press noted that EDP-Energias de Portugal and Rede Eléctrica Nacional (REN) as well as Visabeira are some of the companies that are potentially interest in a deal that would net the Portuguese state around 200 million euros.