Mozambique, China in talks on hydro-power project

Mozambique is close to a deal with China that would pave the way for a US$300 million hydro-electric dam in Maputo, Reuters reported an official as saying on Monday.
China’s Export-Import Bank already has agreed to finance studies for the Moamba Major project, which would expand the supply of electricity as well as drinking water in the Mozambiquan capital, Public Works and Housing Minister Felicio Zacarias said.
The talks could see the Chinese taking a much larger stake in the project, according to Zacarias, who did not provide further details.
"We are about to close the discussions and hope China will fund and construct the dam," Zacarias told Reuters in an interview. He added that the project could help control flooding and droughts in the impoverished southern African nation.