Mozambique: JDA for 1800 MW Coal Fired Plant Announced

  • Ncondezi Energy has signed a joint development agreement for a thermoelectric power station in Mozambique’s Tete province with the China Machinery Engineering Corp. (CMEC) and General Electric (GE).
  • Ncondezi Energy is expected to have a 40% stake in this project which links a coal mine to a thermal power plant.
  • The project will have an initial production capacity of 300 MW scaling to 1800 MW when fully complete.
  • The Tete region is currently not connected to the national grid.

In the agreement the parties will initially focus on finalising a set of development co-funding investment conditions which include finalisation of the electricity tariff and PPA with EDM. Ncondezi to be responsible for any agreed additional third party development costs during this phase other than the EPC and O&M tendering related costs which will be the responsibility of CMEC and GE.

China Machinery Engineering Corp will be responsible for engineering design, materials procurement and construction, as well as operation and maintenance and that GE Switzerland will guarantee the technological component of the project, including the boiler, steam turbine, generator and emission-quality control solutions.

Ncondezi responsible for 40% of development costs to FC based on an agreed budget once the development co-funding investment conditions have been satisfied or waived.

A subscription price and terms for the 60% share in the Project will be agreed once the electricity tariff with EDM has been confirmed, utilising an accredited asset valuation firm to be appointed by the Parties, and it is expected to be paid at an agreed date when the Project transaction agreements, internal and government approvals are obtained.

Link to JDA here

Author: Bryan Groenendaal

A thermal power station is a power station in which heat energy is converted to electric power. In most of the places in the world the turbine is steam-driven. Water is heated, turns into steam and spins a steam turbine which drives an electrical generator. In this case the heat will be generated from burning coal. 

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