Ncondezi Energy signs up CMEC and GE

5 August 2019

Plans for the construction of an integrated thermal coal power plant and mine project in Tete Province, Northern Mozambique, are taking shape.

Developer Ncondezi Energy has signed a joint development agreement with China Machinery Engineering Corporation (CMEC) and General Electric Switzerland Gmbh to develop and build the 300 MW power plant and mine.

The project will boost generating capacity and electrification rates in the Tete region, which is not currently connected to Mozambique’s national grid, Ncondezi Energy said. The joint development agreement will enable the partners to formally engage with the Mozambique government and state power utility, Electricidade de Mocambique (EDM), on the electricity tariff and key Project commercial agreements such as the Power Purchase Agreement (PPA) and Power Concession Agreement (PCA).

Under the agreement, CMEC will be the main Engineering, Procurement and Construction (EPC) and Operations and Maintenance (O&M) contractor for the project. GE will be the main equipment subcontractor, responsible for providing the boiler, steam turbine, generator, and air quality control solutions.

Ncondezi Non-Executive Chairman, Michael Haworth said: “The Board welcomes CMEC and GE to the Project as partners and co-developers and looks forward to working with two world class companies who will bring complimentary skills, resources and experience to deliver the project.

“This is a significant milestone that should materially enhance the credibility of the project in Mozambique and with international financiers, helping to unlock key development processes including the finalisation of the electricity tariff and PPA with EDM as well as initiating project financing discussions with banks and the China Export and Import Credit Insurance Company (Sinosure).

“Whilst key milestones are still to come, the JDA is an important step towards the goal of generating power in 2023.”

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