German development bank Kreditanstalt fur Wiederaufbau (KfW) said it will grant funds of $23.5m power to the company Electricidade de Mozambique (EdM) to re-develop two hydro projects.
The funds to renovate 38.4MW Chicamba and 52MW Mavuzi hydroelectric plants is said to be a part of contract signed by both the parties.
EdM has outlined revival plans with an investment of $120m after the company acquired abandoned plants.
Meanwhile, the company has secured remaining funds from overseas investors including $46.1m from Swedish investors and $65.5m from French investors.
