The funding that the South Korean government is providing is under the Economic Development Cooperation Fund in the country and will be offered interest-free for 40 years, which also includes a grace period of 15 years.The three solar plants are also part of South Korea’s plans to support eco-friendly plans in Africa.The government has also stated that it will offer training for the operation of the plants and the maintenence works as part of the entire deal to have trained local personnel with the know-how.
The three solar plants are to be developed to provide 400 to 500 kilowatts of power and will be situated in Niassa, which is located in the northern part of Mozambique. Niassa has a population of just over a million and is also one of the provinces that is badly hit by power failures and lack of electricity.
The electricity infrastructure in Mozambique is largely under-developed in the rural areas with statistics showing that as little as two percent of rural dwellers have access to electrical power. The urban population also has to deal with irregular power supplies. The South Korean government has stated that it is interested in extending its services and funds to development and establish eco-friendly infrastructure in other African provinces as well.