Notice No. 9/GBM/2024, of August 9 - Revokes Article 13 of Notice No. 1/GBM/2023 of April 26

Friday, August 9, 2024 | SERIES I — Number 155 SUMMARY Council of Ministers: Decree No. 60/2024: Grants the concession and approves its respective terms and conditions for the Namaacha Wind Project to Central Eléctrica de Namaacha, S.A., for the generation and sale of produced electricity, with an installed capacity of 120 MW. Bank of Mozambique: Notice No. 9/GBM/2024: Revokes Article 13 of Notice No. 1/GBM/2023, dated April 26.

COUNCIL OF MINISTERS Decree No. 60/2024 of August 9, 2024

Whereas it is necessary to grant a concession for the production and sale of electricity to Central Eléctrica de Namaacha, S.A., for the implementation of the Namaacha Wind Project, pursuant to paragraph a) of paragraph 1 of Article 5 of Law No. 12/2022, dated July 11, Electricity Act, combined with paragraph d) of paragraph 2 of Article 21 of Law No. 15/2011, dated August 10, on Public-Private Partnerships, Large-Scale Projects and Business Concessions, the Council of Ministers decrees:

Article 1. The concession is granted and its respective terms and conditions are approved for the Namaacha Wind Project to Central Eléctrica de Namaacha, S.A., for the generation and sale of produced electricity, with an installed capacity of 120 MW.

Article 2. The Concession aims to implement the Namaacha Wind Project and grants the exclusive right to: a) design, finance, construct, own, operate, maintain and return the Namaacha Wind Project, including electricity transmission facilities and equipment necessary for connecting the project to the National Transport Network, including the right to carry out any related studies; and b) produce and sell reliable electricity from the Namaacha Wind Project.

Article 3. The Concession is valid for 28 (twenty-eight) years, in accordance with the Concession Agreement.

Article 4. The Concessionaire is governed by Law No. 15/2011, dated August 10 (Public-Private Partnerships, Large-Scale Projects and Business Concessions Act), Law No. 12/2022, dated July 11 (Electricity Act) and their respective regulations, by the terms of this Concession Agreement, by the Investment Authorization Terms and other applicable legislation, and shall: a) obtain approval from the Energy Regulatory Authority regarding the final tariff for the Namaacha Wind Project; b) operate and maintain the Namaacha Wind Project at its own expense, including necessary repairs, to ensure safe and reliable operation of the project; c) operate and maintain the Namaacha Wind Project with due prudence, considering the safety of persons and property, as well as environmental preservation obligations where it operates, in accordance with applicable legislation; d) maintain general and specialized accounting records, as well as statistical, tax and labor information, in accordance with applicable legislation; e) pay all taxes and fees currently in force in Mozambique and applicable to the project; f) provide financial guarantees supporting the performance of its obligations, under the Concession Agreement and applicable legislation; g) ensure access for the Granting Authority, or an authorized person by the Granting Authority, to inspect facilities, equipment, books and accounting documents and other relevant documents concerning the Concessionaire's activities related to the Namaacha Wind Project; h) deliver, upon request by the Granting Authority, within a reasonable period not exceeding 30 days from the date of the request, data and information regarding the Namaacha Wind Project to determine compliance by the Concessionaire with its obligations under the Concession Agreement; and i) maintain complete and detailed records of all activities related to the Namaacha Wind Project, and make them available to the Granting Authority and its duly authorized representatives within a reasonable period.

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2. The Granting Authority has the following general obligations: a) support and assist, in accordance with applicable law and within its competence, for the Concessionaire to fulfill its obligations under the Concession Agreement; and b) support and assist, in accordance with applicable law and within its competence, the Concessionaire to identify all licenses and approvals such as environmental, tax, work, land, water or any other approvals issued by the respective Government Authorities, and provide assistance to the Concessionaire in its relations with the competent Government Authorities, aiming to obtain any approval and timely renewal of these approvals.

Article 5. From the effective date, the Namaacha Wind Project shall, during the validity of the concession, generate appropriate social and economic benefits through, among others, the following: a) increased installed electricity production capacity in Mozambique and supply security, while simultaneously diversifying the sources used for energy production; b) job creation and provision of training for local communities; c) contribution to the economic development of Mozambique, by making part of the installed capacity available to the National Transport Network; d) generation of tax revenues for the State; e) implementation of programs, projects and actions for corporate social responsibility, sustainability and social development with communities in the project's influence zones; and f) implementation of environmental protection programs and mitigation of the environmental impact of the Wind Project's activities.

Article 6. Under Law No. 4/2009, dated January 12, which approves the Tax Benefits Code, the Namaacha Wind Project falls under basic electricity infrastructure projects of public utility.

Article 7. In compliance with obligations arising from applicable legislation, the Concessionaire commits to: a) allocate to the State a free 5% share of the Concessionaire's share capital, for the usufruct of the right to exploit natural resources; b) allocate a minimum reserved 5% share in favor of the economic inclusion of individual Mozambican citizens, to be listed on the Mozambique Stock Exchange through a public offering, within 5 (five) years from the start of commercial operation; and c) provide an opportunity for Mozambican public or private legal entities to participate in the Concessionaire's share capital by at least 10% (ten percent), under terms to be negotiated and agreed upon between them and the Concessionaire.

Article 8. The participation of Electricidade de Moçambique, E.P., in the shareholding structure of the Concessionaire is authorized. 2. A free 5% share of the Concessionaire's share capital is authorized for Electricidade de Moçambique, E.P., representing the State.

Article 9. It is the responsibility of the Minister overseeing the Energy sector to approve matters and requests submitted by the Concessionaire, in accordance with the Concession Agreement, without prejudice to the competencies assigned to other entities regarding matters of the Concession Agreement.

Article 10. The Minister overseeing the Energy sector is delegated the competence to sign, on behalf and in representation of the Government of the Republic of Mozambique, the respective Concession Agreement for the Namaacha Wind Project with the Concessionaire.

Approved by the Council of Ministers on July 9, 2024. Published. Prime Minister, Adriano Maleiane.

BANK OF MOZAMBIQUE Notice No. 9/GBM/2024 of August 9, 2024

Whereas it is necessary to adjust the penalty regime provided for in Notice No. 1/GBM/2023, dated April 26, the Bank of Mozambique, pursuant to paragraphs 1 and 2 of Article 27 of Law No. 1/92, dated January 3, determines:

ARTICLE 1 Revocation Article 13 of Notice No. 1/GBM/2023, dated April 26, which approves the Regulation on the Calculation and Establishment of Mandatory Reserves, is revoked.

ARTICLE 2 Entry into Force This Notice enters into force on the date of its publication.

ARTICLE 3 Clarification of Doubts Questions regarding the interpretation and application of this Notice shall be submitted to the Markets and Reserve Management Department of the Bank of Mozambique.

Maputo, June 21, 2024. – Governor, Rogério Lucas Zandamela. Electronic edition by Pandora Box, Lda.