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Mozambique - Gas Engineering Project (English)

The ratings for the project were as follows: the outcome was highly satisfactory, the sustainability was highly likely; the institutional development impact was modest, and the Bank and borrower performance were both satisfactory. The lessons learned indicate that exclusive rights should be awarded competitively - this applies to virtually all commercial activities including exploration and production, transportation, and distribution. As this Project very well illustrates, without the benefit of tendering, agreements have to be negotiated in detail, a lengthy and costly process, without reference points or benchmarks. One should have recognized at appraisal that developing a national oil company required considerable capital, skills and experience that for all practical purposes, are unaffordable for Mozambique. Empresa Nacional de Hidrocarbonetos de Mozambique (Mozambique Electricity Company) (ENH) hired very qualified advisers, at a considerable expense, to strengthen its capabilities, but whether this was sufficient to best defend the national interest is a matter of debate. ENH totally depended on its external advisers to appraise and negotiate the transactions. Irrespective of their performance, it does not appear that there was a substantial transfer of skills particularly in the business aspects of petroleum Joint Ventures. Had Mozambique given exclusive rights to a private party in a concession in which the State intends to invest prior to the submission of the Project to the Board, the advisability of such a proposition would have been heavily questioned within the Bank.


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    Implementation Completion and Results Report

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    Mozambique - Gas Engineering Project

  • Keywords

    Gas industry; Methodology; Equipment; Materials engineering; Training activities; Operating expenses; Consultants; Performance indicators; Project costs; Project financing; Economic costs; Benefits; Inputs; Ratings & rankings; Achievement outcomes; Outputs; Rate of return; Financing plans; Transportation; Production; Distribution; Exports; Private sector; Gas pipeline; Legal framework; Regulatory framework; Gas reserves; Technical Assistance; Environmental issues; Mitigation measures



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Mozambique - Gas Engineering Project (English). Washington, D.C. : World Bank Group.