Brazil has promised that it will honour its pledge to finance the construction of the Moamba Major Dam on the Umbeluzi River in Maputo Province despite the re-assessment of Brazilian co-operation projects with Mozambique and other countries.

The pledge was given by Brazilian Ambassador to Mozambique Rodrigo Soares, when he spoke to journalists after he was received by Prime Minister Carlos Agostinho do Rosario here Wednesday.

Soares claimed that the re-assessment of projects which required public funds was a “normal procedure” in the context of the current changes in Brazil’s government (following the impeachment of President Dilma Roussef). The reassessment, he added, was being made by Brazil’s National Economic and Social Development Bank (BNEDES).

The BNEDES announced a month ago that it had suspended funding for projects of 25 Brazilian companies under investigation for corruption, including construction work in Mozambique and Angola.

The Brazilian companies are being investigated under Operacao Lavo Jato (Operation Car Wash), an investigation undertaken by the Brazilian Federal Police into allegations of money laundering and corruption. The BNDES named the companies concerned as Odebrecht, OAS, Queiroz GalvAPound o, Camargo CorrA�a and Andrade Gutierrez.

The main project at risk in Mozambique is the Moamba Major Dam, where the contractor is Andrade Gutierrez.

Soares, however, stressed that the Brazilian government wants to strengthen its co-operation with Mozambique, and claimed that Mozambique is currently the largest beneficiary of Brazilian co-operation in the world.

The first stone for the construction of Moamba Major Dam was laid two years ago. When complete, the dam will be able to store 760 million cubic metres of water.

The dam can control the flow of the Incomati, and boost water supply for Maputo and Matola cities and the town of Ressano Garcia on the border with South Africa. The dam will also accommodate a power station which can produce 15 megawatts (MW) of electricity.

The total cost of the dam is put at 466 million US dollars. Through the BNDES, Brazil had promised to provide 320 million USD.