ABB wins US$ 32 million contract to strengthen power supply in Mozambique

Power transmission system will help create industry and raise living standards

Zurich, Switzerland, September 17, 2002 - ABB, the global power and automation technology group, said today it has won a US$ 32 million order to build a power transmission system in Mozambique to supply power to the northwestern Niassa province.

The 343-kilometer line and transmission system will link the region to the central/north electricity grid, providing stable electricity supply from the Cahora Bassa hydroelectric power plant.

"ABB brings the global expertise and local know-how needed to ensure fast implementation of large infrastructure projects," said Richard Siudek, executive vice president and head of ABB’s Utilities division.

"This transmission link is crucial to Mozambique’s continued economic development as increasing the supply of reliable power is a catalyst for stable industrial growth and standard of living improvements," Siudek said.

Under the contract signed with the state-owned power company EdM, Electricidade de Mozambique, ABB will design, manufacture and install the 110KV power transmission link and two new transformer substations, and extend two of the existing ones.

ABB will also connect a medium-voltage network which will distribute the power in the province via 56 smaller transformer substations and more than 8,000 service connections.

Niassa, Mozambique’s largest province, is the last to be connected to a stable power grid. The new link will give thousands of people access to electricity, and is expected to boost agriculture and attract new industries to the province.

The project is financed by Swedish and Norwegian state aid organizations SIDA and NORAD, and involves ABB in Sweden, Norway and South Africa. It starts in September and is scheduled for completion in January 2005.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impacts. The ABB Group of companies operates in more than 100 countries and employs about 150,000 people.

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      Thomas Schmidt
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