The Mozambican government plans to direct €42.6 million in liquefied natural gas (LNG) revenues into public infrastructure in 2027, with allocations targeting road rehabilitation, school and hospital construction, and a future Parliamentary City in Zambézia province.

The figures are contained in the draft Economic and Social Plan and State Budget (PESOE) for 2027, which distributes gas receipts across sectors deemed strategic for the country’s economic and social development, according to the Lusa news agency.

Under the framework established by Law No. 1/2024, 60% of LNG exploitation revenues must be channelled into the State Budget through the Single Treasury Account, while the remaining 40% is directed to the Mozambique Sovereign Wealth Fund.

“Of the total State Revenue projected for 2027, an estimated €42.6 million is expected to derive from LNG exploitation,” the budget proposal states, adding that the funds will finance “structuring projects in areas such as infrastructure, agriculture, renewable energy and industry, with an impact on improving living conditions for the population.”

N1 Highway Absorbs the Largest Share

The single largest allocation — €15.5 million, representing more than one third of the total LNG revenues in the 2027 budget — will go towards rehabilitating National Road No. 1 (N1), Mozambique’s primary road corridor linking the south to the north of the country. The funds will be managed by the Ministry of Transport and Logistics.

Education is the second-largest beneficiary, receiving €8 million for the construction, rehabilitation and equipping of school facilities, to be implemented through the Ministry of Education and Culture.

The government also plans to invest €6.9 million in the construction of the future Parliamentary City in Zambézia province, a project to be financed through the Office for Structural Reforms and Projects.

Health Sector Receives €5.7 Million

The health sector is allocated €5.7 million for improving hospital infrastructure and strengthening healthcare delivery capacity.

Of this amount, approximately €4.1 million will be applied to the equipping and operationalisation of district hospitals, while the remaining €1.6 million will fund the construction, rehabilitation and equipping of hospitals and other health facilities.

Water resources are set to receive €3.3 million for the construction of dams and reservoirs, to be administered through the Central and Northern Regional Water Authority. The proposal also includes €139,000 for the construction of the Muera dam, under the responsibility of the Ministry of Public Works, Housing and Water Resources.

Energy and Fiscal Administration Also Receive Funding

The Ministry of Mineral Resources and Energy will receive approximately €734,000 for projects related to the use of natural gas in transport, including the construction of compressed natural gas refuelling stations and the installation of gas supply equipment at existing infrastructure.

A further €752,000 is earmarked to continue the electrification of administrative post headquarters, as part of the broader programme to expand access to electricity.

On the fiscal side, the Mozambique Tax Authority is set to receive €1.6 million to construct and modernise tax and revenue collection posts.

Execution Contingent on Budget Approval

The management of LNG revenues follows the natural resource income framework established by Law No. 1/2024, which divides these resources between public expenditure financing and long-term savings accumulation through the Mozambique Sovereign Wealth Fund, created to ensure the sustainable management of resource income.

Through this allocation, the government aims to convert a portion of gas industry revenues into public investment, primarily in infrastructure, education, health and energy. Execution remains contingent, however, on the approval of the PESOE 2027 and the effective collection of the projected revenues.