China will grant a US$400-million loan to Mozambique toward the construction of a 600-kilometre electricity transmission line between the African country’s Zambézia and Nampula provinces, Portuguese news agency Lusa reported.

Speaking on behalf of Mozambican Government, Mouzinho Saíde, Vice Minister of Health, said on Tuesday the loan from China had been secured. He didn’t mention the conditions of the loan or on what date it would be granted, Mozambican newspaper Notícias reported, as quoted by Macau online news portal Macauhub.

Mr Saíde was speaking after a Cabinet meeting in which Mozambique’s Government also discussed and ratified a US$200-million loan agreement from the Islamic Development Bank (IDB). That deal was concluded in June to provide part of the funding needed to build the US$600-million power transmission line.

According to Lusa, interruptions earlier this year in the region’s power transmission have left part of the area without electricity for almost a month. The new power line would allow an alternative electricity source for the region, the news agency explained.