Intra Energy Corporation (IEC) has signed a memorandum of understanding (MOU) with China’s Sinohydro Corporation to jointly develop a 270 MW coal-fired power plant in Tanzania.
The Ngaka power plant is designed to be a 2 x 135 MW power plant using coal sourced from coal fields operated by Tancoal, a subsidiary of IEC. It will provide around 15 per cent of Tanzania’s current electricity needs.
Australia-based IEC said in a statement that the purpose of the MOU is to clarify the responsibilities of the two companies in the development of the project and negotiations with the Tanzanian government.
IEC and Sinohydro will establish a special purpose vehicle (SPV) to undertake the project. Sinohydro will be the majority shareholder and will be responsible for the engineering, construction, operations and financing, while Tancoal Energy Limited will be responsible for the development, mining and supply of coal to the Ngaka power station.
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